Japan's Central Bank Deputy Governor Calls for Holistic Approach to Future Currency System Design

According to Reuters, Japanese central bank deputy governor Yoshizo Hiwatari called for a holistic approach to designing future global monetary systems at the Japan Financial Association annual meeting, stating that options should not be limited to central bank digital currencies (CBDCs) and stablecoins, but may include tokenized bank deposits and blockchain-based central bank reserves.

The central bank has launched a sandbox project to explore the technical feasibility of tokenizing central bank reserves for blockchain-based payment settlement. Japan is simultaneously advancing stablecoin legislation while proceeding with CBDC pilot projects.