Bank of Japan Deputy Governor Shinichi Uchida Says Stablecoins Could Challenge Deposit Uniformity

A brief report says Shinichi Uchida, Deputy Governor of the Bank of Japan, warned that wider social use of stablecoins may raise questions about their uniform relationship with bank deposits.

Summary

Shinichi Uchida, Deputy Governor of the Bank of Japan, said that if stablecoins become widely used in society, their relationship with deposits could become an issue, according to the source. The reported concern centers on the "singleness" or uniformity between stablecoins and bank deposits, a concept tied to whether different forms of money are treated as equivalent in everyday payments. In central banking and payment system discussions, this matters because confidence in money often depends on users being able to transact across instruments without uncertainty over value or settlement.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically by being linked to a fiat currency such as the Japanese yen or U.S. dollar.
  • Bank of Japan: Japan’s central bank, responsible for monetary policy, financial stability, and oversight of payment and settlement systems.
  • Singleness of money: The principle that different forms of money should be accepted at par value, helping ensure consistent trust and smooth payments across the financial system.