BOJ ex-board member says another rate hike unlikely this year

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Japanese Yen Tumbles to 34-Year Low Against Soaring US Dollar

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Japanese yen-backed digital currency, DCJPY, to go live in July 2024

October 12, 2023 Coin Telegraph

Bank of Japan

A group of Japanese companies, united behind the DeCurret brand, intends to launch the coin in July 2024.

On Oct. 12, DeCurret Holdings published a White Paper on the digital currency project DCJPY. The group of Japanese companies intends to launch the coin in July 2024.

According to the White Paper, the DCJPY network will consist of two areas: the Financial Zone and the Business Zone. The former will include banks, minting bank deposits as digital currency on the blockchain, while the latter will be reserved for transactions. The Business Zone will provide space for issuing non-fungible tokens (NFT), security tokens (ST), and governance tokens (GT).

The leading issuer of the DCJPY, backed by deposits in Japanese yens, will be the Aozora Bank, the commercial entity with 19 domestic branches in Japan. In 2021, DeCurret reported about a consortium of 70 Japanese companies that would participate in the DCJPY network. While the White Paper doesn’t mention any specific names of the network participants, DeCurret itself is backed by 35 shareholding companies, with such prominent names as Japan Post Bank, Mitsubishi and Dentsu Group among them.

DeCurret will hold a seminar on the White Paper explaining the main points behind the project on Oct. 18. The meeting will take place in Tokyo and won’t be screened online.

In May 2023, the Bank of Japan (BOJ) released the results of the second phase of its central bank digital currency (CBDC) experiment. It will make a final decision on the issuance of a “digital yen” by 2026.

Meanwhile, Binance, Mitsubishi UFJ Trust and Banking Corporation (MUTB) are exploring the issuance of Japanese yen and other foreign currency-denominated stablecoins in the country.

Magazine: Beyond crypto: Zero-knowledge proofs show potential from voting to finance

Japan plans to form expert panel to explore digital yen: Report

March 30, 2023 Coin Telegraph

Bank of Japan

The ministry’s panel will reportedly focus on developing a framework for a central bank digital currency based on a technical study carried out by the Bank of Japan over the past two years.

Japan's Finance Ministry is planning to establish an expert panel in April to explore the feasibility of introducing a digital yen, Japanese news outlet NHK reported.

According to the report, the ministry’s panel will focus on the creation of a framework for a central bank digital currency (CBDC) and will refer to a technical study conducted by the Bank of Japan (BOJ) over the past two years. The ministry intends to use the findings from the expert panel to prepare for the possible issuance of a digital yen.

CBDCs are digital versions of traditional currencies, such as the U.S. dollar, yen and euro, issued and backed by central banks. Unlike cryptocurrencies, which purport to be decentralized and not backed by any government or central authority, CBDCs are issued by a central bank and operate within a centralized system.

Although CBDCs are still in the early stages of development, opponents of central bank issued digital currencies have expressed concern that this technology would give monetary authorities unprecedented control over financial transactions. Additionally, some people argue that CBDCs are unnecessary and that traditional forms of payment are sufficient.

Central bank digital currency (CBDC): Government control your money.

Bitcoin: You control your money. pic.twitter.com/KnUBuR7CE8
— Pan ₿ (@satstackerMY) December 30, 2022

Despite these concerns, many central banks worldwide are exploring the possibilities of issuing CBDCs, and the debate surrounding their use is ongoing. The United States, China, India and several European nations are already examining the viability of state-run digital currencies.

As previously reported by Cointelegraph, the Central Bank of the United Arab Emirates (CBUAE) is making progress toward the full launch of its CBDC, called the digital dirham for domestic and cross-border payments. On March 23, the CBUAE announced it had signed an agreement with G42 Cloud and R3 to provide infrastructure and technology for the CBDC implementation. In addition to addressing payment challenges, the digital dirham is expected to promote financial inclusion as the country aims to become a cashless society.

US explores additional bank support favoring First Republic’s benefit: Report

March 26, 2023 Coin Telegraph

Bank of Canada

Despite banking laws stating that remedies should not be aimed at benefiting a specific bank, this change could be structured “in a way to ensure” First Republic benefits, according to unnamed sources.

United States authorities are reportedly deliberating on "expanding" an emergency credit line for banks, which may provide First Republic Bank a time buffer to address balance sheet concerns, according to people familiar with the situation.

In a March 26 Bloomberg report citing unnamed sources, it was reported that U.S. officials are ruminating on what support, "if any," can be provided to First Republic, however an “expansion of the Federal Reserve’s offering” is one of the options being explored.

First Republic was reportedly deemed “stable enough to operate” by regulators without the need for an “immediate intervention,” as efforts are made by the bank in the meantime to “shore up its balance sheet.”

The sources noted that while the Fed’s liquidity offerings would be reportedly expanded in accordance with banking law, which stipulates that it must be “broadly based” and not aimed at benefiting a specific bank, they also warned that the alteration could be “made in a way” that ensures First Republic Bank benefits.

It was reported that despite First Republic facing structural challenges with its balance sheet, "the bank's deposits are stabilizing” and is not at risk of experiencing “the kind of sudden, severe run” that led regulators to close down Silicon Valley Bank. It noted:

“It has cash to meet client needs while it explores solutions, the people said. That includes $30 billion deposited by the nation’s largest banks this month.”

This comes after the Fed announced a plan on March 19 to strengthen liquidity conditions through “swap lines," which involve an agreement between two central banks to exchange currencies.

Coordinated central bank action to enhance the provision of U.S. dollar liquidity: https://t.co/Qs4cYY8BFO
— Federal Reserve (@federalreserve) March 19, 2023

"To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of seven-day maturity operations from weekly to daily," the Fed said in a statement

The swap line network – which involves the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, and the Swiss International Bank – commenced on March 20 and is set to run until at least April 30.

Several Major Central Banks Take Coordinated Action to Boost Liquidity Amidst Banking Crisis

March 20, 2023 Bitcoin.com

The Bank of Japan to launch its CBDC pilot before May

February 17, 2023 Coin Telegraph

Bank of Japan

The Bank decided to launch a pilot program for “digital yen” in April, after finishing its Proof of Concept testing, that has begun in 2021.

Japan, a nation where foreign stablecoins like USDT are prohibited, plans to begin its central bank digital currency (CBDC) pilot in April 2023. It will aim to include private businesses and test an ecosystem.

On Feb. 17 the Bank of Japan (BoJ) released the opening speech of its executive director Shinichi Uchida at the CBDC committee meeting. In it, Uchida announces that the Bank decided to launch a pilot program for “digital yen” in April, after finishing its Proof of Concept testing, that has begun in 2021.

The pilot test will continue the work on the technical feasibility of “digital yen” and extend the experiment to the modeling of a CBDC ecosystem with the participation of private companies. As the official specifies, no actual retail transactions will be made during the pilot, only the simulated ones.

Uchida’s speech focuses on the design of the future CBDC and the need to consult with the private sector on alternative data models, architectures for offline payments and other vital elements of the system. For this kind of consultation, the CBDC forum will be created.

The news about the CBDC pilot was highly anticipated, as the local media reported about the BoJ’s intention back in November 2022. From these reports, it is known that at least three Japanese megabanks and regional banks will collaborate with the BoJ.

Meanwhile, Japanese authorities also consider lifting the ban on foreign stablecoins, which came into law in 2022. According to the Financial Services Agency (FSA) of Japan, the amendments should be passed by June 2023. While they won’t let any foreign stablecoin into the market automatically, the green light will be shown to those coins, which successfully passed individual checks.

Will Bitcoin price crack $22K? Dollar weakness, Bank of Japan easing boost hopes

January 18, 2023 Coin Telegraph

Bank of Japan

No change in central bank policy from Japan caused ruffled feathers in forex markets, but Bitcoin remains tied to a trading zone near two-month highs.

Bitcoin (BTC) faced a potentially volatile day on Jan. 18, with multiple macro triggers beginning to unsettle the outlook.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

BoJ refuses to hike

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding firm above $21,000 on the day.

The pair remained cool amid news from Japan, where the central bank — the Bank of Japan (BoJ) — had decided to keep an ultra-easy policy in place, defying expectations of an interest rate hike.

In so doing, both the yen and U.S. dollar took a hit, the latest chapter in a saga being keenly watched by crypto commentators.

"In keeping its key rate and yield curve control policy unchanged at today's meeting, the Bank of Japan probably wanted to convey a message to the market; don't fight the BoJ," ING reacted in a dedicated response piece.

Cointelegraph contributor Michaël van de Poppe focused on a fresh decline in the U.S. dollar index (DXY) following the news.

“Another bearish retest taking place on the DXY, in which this one starts to drop substantially, maybe even due to the announcements from the BoJ earlier today,” he summarized.

In the event, DXY bounced at 101.9, not quite retesting the seven-month lows achieved on Jan. 16.

*U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView*

Van de Poppe also noted upcoming data due from the U.S. later in the form of the Producer Price Index (PPI) for December 2022.

“In a few hours we'll get PPI numbers and Retail Sales,” he added.

“Might be some moving around after.”

BTC whale bidding raises questions

On Bitcoin markets, meanwhile, suspicion continued to swirl around activity on the Binance order book as large-volume traders posted more and more bid liquidity.

On-chain analytics resource Material Indicators argued that a single entity was potentially moving bids higher, helping buoy BTC/USD at two-month highs.

“Speculating that it could be the same whale using the $4M to insulate their $22M and give enough time to rug the $22M if the $4M gets hit. Just a theory. Time will tell,” one of multiple Twitter posts on Jan. 17 stated.

A subsequent tweet nonetheless voiced concern over “how long they can keep this up,” implying a corrective move could still present on Bitcoin.

*BTC/USD order book data (Binance). Source: Material Indicators/ Twitter*

The latest snapshot of the Binance order book showed the strongest resistance clustered at $22,000.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Japan to lift the ban on foreign stablecoins like USDT in 2023: Report

December 26, 2022 Coin Telegraph

Bank of Japan

None of the 31 crypto exchanges registered with Japan's Financial Services Agency are currently offering trading in stablecoins like USDT or USDC.

Japanese regulators are reconsidering some major cryptocurrency restrictions related to the use of stablecoins like Tether (USDT) or USD Coin (USDC).

The Financial Services Agency (FSA) of Japan will lift the ban on the domestic distribution of foreign-issued stablecoins in 2023, local news agency Nikkei reported on Dec. 26.

The new stablecoin regulations in Japan will allow local exchanges to handle stablecoin trading under condition of asset preservation by deposits and an upper limit of remittance. “If payment using stablecoins spreads, international remittances may become faster and cheaper,” the report notes.

Allowing stablecoin distribution in Japan will also require more regulations related to Anti-Money Laundering controls, the FSA said. The authority on Monday started collecting feedback on proposals for lifting the stablecoin ban in Japan. As previously reported, Japan’s parliament passed a bill to ban stablecoin issuance by non-banking institutions in June 2022.

The latest measure will significantly impact cryptocurrency trading services offered in Japan as currently no local exchanges provide trading in stablecoins like USDT or USDC.

According to official data, none of 31 Japanese exchanges registered with the FSA — including firms like BitFlyer or Coincheck — were handling trading in stablecoins as of Nov. 30, 2022.

BitFlyer, one of the largest cryptocurrency exchanges in Japan, trades a total of five cryptocurrencies at the time of writing, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), XRP (XRP) and Stellar (XLM), according to data from CoinGecko.

The FSA did not immediately respond to Cointelegraph’s request for comment.

Japanese authorities have been actively working on crypto-related regulations recently. On Dec. 15, Japan’s ruling party, the Liberal Democratic Party’s tax committee, approved a proposal removing the requirement for crypto firms to pay taxes on paper gains issued tokens. Previously, local regulators also issued recommendations against usage of algorithmic stablecoins like Terra USD (UST).

Bank of Japan

BoJ refuses to hike

BTC whale bidding raises questions

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