Hino Ryozo (日野亮三), Deputy Governor of the Bank of Japan, called for consideration of a “comprehensive approach to currency design” that is not limited to CBDCs and stablecoins, energizing discussions in Tokyo on shaping the future of diverse forms of money.
Discussions in Tokyo on the future global monetary system have intensified, with Bank of Japan Deputy Governor Hino Ryozo (日野亮三) calling for consideration of a comprehensive approach rather than limiting the available choices to a single tool.
In light of developments in the United States and Europe, Hino Ryozo (日野亮三) stressed the need to consider diverse avenues extending beyond CBDCs and stablecoins. He said the design of a future monetary system should take into account technological feasibility, social costs, user convenience, financial stability and monetary policy in an integrated manner.
The Bank of Japan is evaluating the technical feasibility of tokenizing its reserves and has launched a sandbox project to test blockchain-based payment solutions. The central bank is considering the possibility of pursuing instant settlement through payments made via reserve accounts.
While the government has not reached a conclusion on whether to issue a CBDC, trials are under way to support stablecoin issuance by major regional banks and explore its use in cross-border payments. Efforts to assess the stability and efficiency of global payment systems are continuing.