BOJ’s Kuroda: Global stablecoins pose risks to financial stability
- The head of the Bank of Japan expressed concerns over stablecoins.
- His views are in sync with the position of other global regulators.
The global regulators continue mulling over the issuance of stablecoins. The head of the Bank of Japan Kuroda recently noted that the spread of the global stablecoins can lead to serious consequences for the global financial system and impact the transmission of monetary policy.
Speaking on the issue, Kuroda specifically emphasized that global stablecoin project can be put into operation "only after legal, regulatory, oversight challenges and associated risks are adequately addressed." The same ideas were reflected in the recent report on financial stability issued by G7.
Also, if the issuers of global stablecoins can cause stress in global financial markets if they expand beyond their risk management capacity.
Meanwhile, Kuroda comments echo the views recently expressed by the head of the European Central Bank Christine Large. She noted the potential adverse impact of digital euro in the transmission of monetary policy and central bank's feedback with banks
In a separate development, the Central Bank of Russia supported the idea of a blanket ban on using cryptocurrencies as a means pf payment on the territory of Russia.
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Author
Tanya Abrosimova
Independent Analyst
