FX.co ★ Regulators Should Keep Pace with Evolving Financial System: BoJ Himino

Bank of Japan Deputy Governor Ryozo Himino emphasized in a speech on Tuesday the need for global regulators to adapt to significant transformations in the financial landscape. These changes include the increasing influence of non-bank financial institutions and the emergence of stablecoins. Speaking at the 2025 GZERO Summit in Japan, Himino pointed out that although G20 countries have committed to implementing Basel 3 banking reforms, there have been continuous delays in deadlines. Meanwhile, half of the world's financial assets now fall outside the framework's purview. He cautioned that stablecoins might play a central role in global payments, potentially supplanting the function of traditional bank deposits. Himino called for the modernization of international prudential standards and suggested that U.S. banks, benefitting from a robust dollar base, could spearhead the creation of unified standards to avert market fragmentation.