Bank of Japan’s Himino calls for holistic approach to future monetary system

Bank of Japan Deputy Governor Ryozo Himino wants the world to stop treating digital money like a side project. In a speech delivered at the Japan Society of Monetary Economics on May 16, he laid out an ambitious vision: a unified framework that treats central bank money, bank deposits, stablecoins, and tokenized deposits as parts of one interconnected system, not separate regulatory headaches.

The speech, titled “Singleness of Money and the Role of Central Banks,” is essentially a warning shot. As digital currencies proliferate and private money gains traction, Himino argues that the monetary system risks splintering into incompatible silos. If your stablecoin can’t seamlessly convert into yen at par, the whole system starts to crack.

The singleness principle

At the core of Himino’s argument is a concept called the “singleness of money.” Every form of money in an economy, whether it’s a digital token on a blockchain or a balance sitting in a commercial bank account, should be interchangeable at face value without friction. Himino’s concern is that the explosion of new digital money formats, particularly stablecoins and tokenized deposits, could erode that guarantee if left unregulated.

His proposed solution is a holistic policy framework that weaves together monetary policy, financial stability oversight, payments regulation, and what he called “cultural aspects” into a single coordinated agenda.

Japan’s head start on digital money regulation

Japan already has a functioning regulatory framework for stablecoins that requires full backing by fiat currency. Japan is also actively piloting a digital yen, its central bank digital currency. Himino’s speech suggests that this CBDC work is part of a broader strategy to ensure that all forms of digital money remain tethered to central bank liabilities.

Himino’s framework signals that the BOJ isn’t interested in banning private digital money. Stablecoins and tokenized deposits can exist and even thrive, but only if they maintain full convertibility with central bank money.

What this means for crypto and stablecoin markets

For the stablecoin industry, a senior BOJ official publicly arguing that stablecoins should be integrated, not banned, is a signal that the regulatory winds in Japan continue to blow favorably for compliant issuers. The emphasis on full fiat backing and interoperability with central bank money sets a high bar. Stablecoin projects that operate with opaque reserves or resist regulatory oversight would find no friends in Himino’s framework.

For tokenized deposits, a concept where commercial banks issue blockchain-based representations of traditional deposits, Himino’s vision is essentially a green light with guardrails. These instruments fit neatly into his singleness-of-money principle as long as they remain convertible to central bank money at par.