New Chief To Japan’s FSA Calls For Push To Digital Yen

Ryozo Himino stands as the new head of the Japanese financial regulator, the Financial Services Agency (FSA). He has made it clear, however, that he will not take any form of special measures to promote crypto trading above other forms. According to Himino, such a move may not promote technical innovation, as some may think it will.

Pushing For Continued Crypto Regulation

Himino stands as the new head of the FSA, having taken the position back in July of this year. He replaced the previous commissioner, Toshihide Endo.

According to Himino, should the Japanese government deregulate crypto trading, the possible increase in “speculative” trading may happen, yes, but this isn’t what the regulator is going for. Himino was the man who spearheaded the G20 debates last year in regards to cryptocurrencies and its various regulations.

The G20, a group of 20 major global economies, all agreed last year to enforce strict regulations against cryptocurrencies as a whole. This was spurred, in part, thanks to Facebook announcing its Libra stablecoin, with G20 seeing it as a global risk against nations and their respective sovereign currencies.

Planning For A CBDC

Instead, Himino made it clear that Japan should be focusing on its own form of Central Bank Digital Currency, or CBDC. As it stands now, the Bank of Japan, the central bank of the country, is exploring options regarding the matter. Himino explained that all Japan could do, is be ready when it eventually decides to issue out a CBDC so that the process can be as streamlined as possible.

In regards to this, Himino stated that the country would need to heavily consider the merits and drawbacks of issuing a digital currency, and whether or not it’s worth it. However, he has made it clear that he sees the ongoing COVID-19 pandemic as something that will streamline the development of a cashless society.

Japan Caught In A Financial Pinch

As for the current economic crisis hitting Japan, Himino stated that there is no “one-size-fits-all” solution for it. Regional lenders in japan has been struggling immensely due to an array of factors. Interest rates within the country stands at an incredible low, with the COVID-19 pandemic only amplifying problems a shrinking local population is facing.

There are already measures in place to help regional banks, however. Himino stated that these banks could leverage government bail-outs to stay afloat, should they think borrowers will be served the best through doing so. However, Himino made it clear that the situation has yet to devolve to such a degree to necessitate such a measure.