Facebook’s stablecoin Libra has been a hot topic for financial authorities all over the world since it was unveiled in June, with concerns mounting that it could disrupt the global financial system if and when it launches. Harsh criticism has come from the People’s Bank of China, the U.K. Financial Conduct Authority, and prominent U.S. fiscal lawmakers, as well as other governments, according to a report by Ledger Insights.
Kazuma Nakatani, a pro-blockchain Lower House member of Japanese Parliament, asked Prime Minister Shinzo Abe about the government’s attitude towards Libra.
Abe said Libra has been discussed seriously among Japan’s financial authorities, such as the Ministry of Finance, Financial Services Agency, and the Bank of Japan, but did not provide any further details about how the government is viewing the digital currency.
“We would like to consider appropriately how research related to the economic impact of stable coins, including the “Libra” that you pointed out, based on the progress of the future situation,” Abe said.
Nakatani said it is crucial for the government to consider issuing the Central Bank Digital Currency (CBDC)”. He also noted that Japan needed to keep an eye on Chinese giants Alibaba and Tencent as financial platforms, as both companies have just been revealed as possible issuers of China’s national crypto.
Abe said the government needed to consider several factors including user experience, safety, and the impact it would have on the financial system.
“With regard to stable coins, it is pointed out that there is the possibility of making payment services easier to use and the possibility of making cross-border payments faster and cheaper, but there are also indications that various risks arise,” he added.
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