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BOJ Deputy Governor Urges Overhaul of Global Rules as Stablecoins, Non-Banks Recast Finance

He calls for tailored coordination with public buy-in to prevent market fragmentation.

Overview

  • Speaking at the GZERO Summit Japan on Oct. 21, Ryozo Himino said regulators must modernize prudential standards to keep pace with structural shifts.
  • He cited repeated delays to Basel 3 despite G20 pledges, warning that patchwork timelines leave gaps in oversight.
  • Roughly half of global financial assets now sit in non-bank institutions outside Basel 3’s remit, he noted.
  • Stablecoins could become significant payment rails that partly replace bank deposits, requiring agile cross-border standards.
  • Japan’s recent moves underscore the urgency, with a regulator-approved yen stablecoin from JPYC and reports of major banks pursuing a joint yen token and payment platform.