Bank of Japan governor criticises Bitcoin and backs stablecoins

Trading Bitcoin is speculative in nature, and the asset is rarely used as a means of settlement. This was stated by Bank of Japan Governor Haruhiko Kuroda in an interview with Bloomberg.

“Most trading is speculative, and volatility is extremely high. Bitcoin is hardly used as a means of settlement,” said Kuroda.

The official stressed that cryptocurrencies should not be confused with stablecoins, whose value is backed by reserve assets. In his words, “stablecoins” must meet stringent regulatory standards to become a convenient payment instrument in the future.

Kuroda joined central bank chiefs who have criticised digital gold.

Earlier, the Governor of the National Bank of Denmark Lars Rohde, in an interview with Bloomberg, described cryptocurrencies as a “speculative whim” that can be ignored. He said they do not pose a danger to monetary regulators — the real threat comes from big tech firms.

“If tech giants master the means of conducting transactions, this could pose a real threat to the autonomy and independence of central banks,” Rohde said.

In May 2021, the Governor of the Bank of England, Andrew Bailey, stated that cryptocurrencies have no intrinsic value, therefore investments in them carry substantial risk.

In the same month, Christine Lagarde, head of the European Central Bank, warned that some digital assets «are predisposed» to the risk of money laundering.