Japan’s leading banks will begin to study and develop government infrastructure for settlements in digital currencies.
The research group includes leading Japanese banks MUFG, Mizuho and Sumitomo Mitsui Banking Corporation, Japan Railway and a number of non-financial organizations. The group was led by Hiromi Yamaoka, former head of payments and settlement at the Bank of Japan. The research will be supported by the financial services Agency of Japan (FSA), the Ministry of internal Affairs and communications of Japan, the Ministry of Finance of Japan, and the Ministry of economy, trade and industry of Japan.
Yamaoka explained that this initiative is aimed at clearly defining the options for using digital currencies in the country and forming a consensus on making payments using them. At the same time, it is necessary to comply with the requirements of the country’s financial regulators, and the entire process should be controlled by the Japanese Central Bank.
Decurret management noted that various businesses and many Central banks have already evaluated the potential and effectiveness of cryptocurrencies, and the interest of organizations in distributed Ledger technology is constantly growing. However, they face challenges-how to protect data privacy, prevent illegal actions using digital assets, and avoid technological risks. These questions will be addressed by a group of researchers.
Twice a month, from June to September 2020, they will organize conferences to discuss these problems in search of a suitable solution for creating a payment infrastructure using blockchain and cryptocurrencies. In addition, the existing options for using cryptocurrencies both in Japan and abroad will be analyzed, as well as the possibilities of the blockchain for conducting calculations. At the end of this period, the group will submit a report on its research and development.
Recall that a few days ago, Japanese Finance Minister Taro ASO (Taro Aso) spoke out against reducing the tax on cryptocurrency income and proposed to equate it with a tax on income from trading shares.