Libra: Bank of Japan Puts Strict Question on Facebook’s Libra Coin

By Tabassum
Published July 5, 2019 Updated July 5, 2019
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Libra: Bank of Japan Puts Strict Question on Facebook’s Libra Coin

By Tabassum
Published July 5, 2019 Updated July 5, 2019

Definitely, Facebook’s announcement of launching Libra is a quite serious concern. After the US’s congressional committee, Bank of Japan is raising a skeptical eyebrow on Libra coin.

Bank of Japan on Libra Coin

The latest report states that the Deputy Governor of Bank of Japan, Masayoshi Amamiya said that the digital currency operator has to comply with regulations on money laundering and risk management. Amamiya told that the operator should comply with policies responsibly and act as a provider of safe and secure payment settlements. He said that;

“As for Libra, we must bear in mind that the potential global user-base could be enormous,”

Beside adding criticizing comment on Libra, he mentioned that Bank of Japan is introducing a digital currency.
More on the point of digital currencies, he said that negative interest on virtual currencies would urge people to come back to cash again. Continuing that he said, no Govt would actually opt to replace cash into digital currency.

“To overcome the nominal zero lower bounds, central banks would need to eliminate cash…Eliminating cash would make settlement infrastructure inconvenient for the public, so no central bank would do this.”

Bank of Japan isn’t the only bank raising the voice on Facebook’s entry into the financial system – there’re many global regulators and financial leaders who think Facebook has to align with high standard regulatory policies.

So far, Japan is known for a broader approach to crypto industry – the infrastructure, crypto exchanges, and bitcoin-accepting merchants. However, the latest remark by Amamiya seems quite disturbing. Amamiya outlines that;

“If central bank digital currencies replace private deposits, that could erode commercial banks’ credit channels and have a negative impact on the economy”


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]