Copy link
Increase text size
Decrease text size
Link copied

Bank of Japan releases research report on legal issues surrounding CBDC issuance

Fri, 29 Nov 2019, 09:36 am UTC

The Bank of Japan (BoJ) has released a research report on central bank digital currency (CBDC), which examined the legal issues surrounding the issuance of CBDC in the country.

The report examines the models for CBDC issuance and discusses the legal issues that may arise from the implementation of CBDC within the Japanese legal framework, including issues pertaining to both private and criminal law, the Bank of Japan Act, legislation on data collection, and administrative and competition law.

The authors noted that legal money is limited to banknotes and money under the current law. Moreover, as it is difficult to include electronic currency, such as CBDC, as interpretation of banknotes, it is necessary to revise the law to give CBDC legality.

The report also touches upon several important concern areas related to CBDC including protecting personal information, preventing money laundering and terrorist financing, and how to deal with currency counterfeiting, duplication or disappearance.

“The specific system design of CBDC can vary greatly depending on the purpose for which CBDC is issued, and if we consider the issue of issuing CBDC, a more detailed legal review is required,” the report said.

This is not the central bank’s first research report on CBDC. Earlier in February, the BoJ had published a report, entitled “Digital Innovation, Data Revolution and Central Bank Digital Currency” that explored various CBDC concepts.

No Immediate Plans to Issue CBDC?

From what it appears, the BoJ is far from issuing a CBDC anytime soon. In a speech in July, Deputy Governor Masayoshi Amamiya said as much but clarified that the central bank will continue researching and studying CBDCs.

As for the reasons behind this continued research, Masayoshi detailed two motives. First, the central bank needs to be able to adapt itself to a situation where a need for CBDC issuance may suddenly increase, he said.

The second reason is that “through research into CBDC -- or through the CBDC lens -- central banks examine more fundamental questions such as: ‘What are the required functions of money?’; ‘What ways do we have of improving the complementary relationship between central bank money and private money?’; or ‘What ways do we have of enhancing the functionality of private digital currency?’ This process can offer clues for ways in which payment and settlement systems as a whole can be improved.”

Masayoshi had also revealed at the time that the BoJ is continuing its research into distributed ledger technology (DLT) as well. This includes Project Stella, a joint research project with the European Central Bank (ECB).

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $9,074.47 (+1.81%)
  • Ethereum (ETH) $173.65 (+1.46%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $371.25 (+1.54%)
  • Bitcoin SV (BSV) $287.90 (-5.07%)
  • Bitcoin (BTC) $9,074.47 (+1.81%)
Jan 28, 2020 (Tuesday)
Crypto Technicals: LTC/USD pivotal at 200-DMA (62.19), 'Golden Cross' on hourly charts raises scope for upside
Transfer agent Vertalo switches to Tezos from Ethereum
Crypto Technicals: ETH/USD hovers shy of 200-DMA (176.06), poised for further gains
Crypto Technicals: BTC/USD extends break above 200-DMA, $10,000 level in sight
Iran issues over 1,000 licenses to cryptocurrency miners: Report
Swiss banking giant Julius Baer launches digital asset services
Jan 27, 2020 (Monday)
Blockchain startup SettleMint raises €1.9M from KPN Ventures and Medici Ventures
Bitcoin Gold blockchain suffers 51% attack, $70k worth of crypto double spent
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Accenture launches blockchain-based marketplace to onboard suppliers
Crypto Technicals: LTC/USD holds cloud support, shows signs of upside resumption
South Korean military taps Raonsecure for blockchain-based biometric ID solution
Indian securities regulator SEBI sees potential in blockchain technology, calls for more active research
Australian crypto exchange Independent Reserve expands to Singapore
Hawaiian lawmakers seek to allow banks to offer crypto custodial services
Crypto Technicals: ETH/USD consolidates weekend gains, break above 200-DMA (176.56) to fuel further upside
Dubai Multi Commodities Center to establish Crypto Valley to boost blockchain ecosystem
World Economic Forum announces new global consortium for cryptocurrency governance
Ukraine to block crypto wallets and seize illegally obtained assets
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.