When it comes to Facebook’s Libra digital currency not even one of the most crypto-friendly countries in the world is turning a blind eye to social media giant’s cryptocurrency plans and hoping all will work out well magically. Rather, Japan is taking proactive steps to understand Libra’s potential ramifications even before the cryptocurrency has gotten off the ground.
According to Reuters, Japan has now set up a working group charged with the responsibility of figuring out the potential impact of Libra on financial regulation, tax payments, financial transactions and monetary policy. Members of the working group have been drawn from Japan’s financial regulator Financial Services Agency, the Ministry of Finance and the Bank of Japan.
Per sources who spoke to Reuters, Japan is also interested in cooperating with other bodies such as the G7 and G20. The two bodies have also been involved in similar efforts aimed at understanding Libra’s potential policy implications. Japan’s efforts to scrutinize Libra come ahead of a meeting of G7’s
financial leaders where Libra will no doubt be a topic of discussion.