Decentralized Finance is gaining more adoption everyday. Thereby reducing the power of regulators in being the sole controller of the financial systems.
This, among a few other reasons, is why some governments are getting concerned and thus seeing it as a threat to the traditional financial system.
In lieu of this, Reuters reported that Japan is “rallying round” with other global financial regulators regarding how better or stricter they can regulate “private digital currencies”.
More particularly, they are more concerned about stablecoins that have relative value to respective fiat currencies.
Japan is setting up structures to achieve this. As the Japanese Ministry of Finance is hiring more staffers, some of the anonymous officials remarked thus, “Japan can no longer leave things unattended with global developments over digital currencies moving so rapidly.”
In a similar way, the Japanese Financial Services Agency—on July 8th—created a unit to “oversee cryptocurrency regulations”. Therefore, it’s evident that Japan is keen to get more hands to research how to implement its goal.
Although Japan has reportedly created this unit, it has not defined the definite scope of the unit.
On the other hand, the Japanese government is stepping up in its research concerning CBDC as they opined that it would be the panacea to private digital currencies from their end; at least, preferable.