The governor of the Bank of Japan expressed the potential of Blockchain and distributed ledger technologies in modern economy development at the International Financial Forum, held in Tokyo on Monday, December 5.
“Some recent information technologies such as the "blockchain" and "distributed ledger technology," or DLT, have the potential to significantly affect money and ledgers, which are the basic infrastructure for financial activities.”
Haruhiko Kuroda pointed out the potential of FinTech and its ability to create an environment where everyone can share their creativity with others, thus contributing to economic development, as long as innovation really enhances the efficiency of financial services. He noted:
“If FinTech enables people in developing countries to access financial services, it would also help those people to use e-commerce and e-learning. This would increase opportunities for people wanting to raise their living standard and receive education. Moreover, if new information technology and FinTech help channel financial support to new ideas, it will help new businesses incorporating new ideas to develop. Through such activities, financial innovation and FinTech will eventually contribute to economic growth.”
Recently, the Bank of Japan expressed its will to lead research and analysis on FinTech, in view of the possibility that the Bank itself may apply FinTech technologies to its operations in the future. The Bank of Japan has also established its "FinTech Center" this spring 2016 in order to facilitate the development of FinTech. However, Haruhiko Kuroda noted in his remarks to the Paris Europlace Financial Forum:
“These trials by the Bank's staff simply aim to understand the mechanics of DLT, rather than applying it to the Bank's own liabilities or its payment and settlement systems.”