Bank of Japan Has No Plans for National Cryptocurrency

BoJ's deputy governor said issuing a crypto directly for consumers could undermine the existing two-tiered system (central bank - banks and banks - comsumers)
17 April 2018   455

The Bank of Japan does not plan to issue its own digital currency at the moment, concerned that this could negatively affect financial stability. This is reported by CoinDesk.

On Friday, in the closing remarks at the IMF conference and the Japanese Financial Services Agency, the deputy governor of the Bank of Japan Masayoshi Amamiya said that the issue of digital currency for direct use by consumers - with or without blockchain - could jeopardize the existing two-tier financial system.

Currently, central banks provide access to a limited number of institutions like private banks (the first level) that already work directly with consumers (second level). Amamia calls this process proven "the wisdom of human beings in history to achieve both efficiency and stability in the currency system."

Thus, according to Amamia, the availability of a digital currency backed by a central bank will change the system, but it will not necessarily preserve its financial stability.

In this regard, the issuance of central bank digital currencies for general use could be analogous to allowing households and firms to directly have accounts in the central bank. This may have a large impact on the aforementioned two-tiered currency system and private banks' financial intermediation.

Masayoshi Amamiya

Deputy governor, Bank of Japan

Nevertheless, according to Amamiya, it is possible that the central bank of Japan will issue its own digital currency in the future. His department has already begun to explore the technology of blockchain with a focus on other areas.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   82

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.