TOKYO – Cryptocurrency operators such as Facebook must comply with regulations on money laundering and risk management, Bank of Japan Deputy Governor Masayoshi Amamiya said on Friday.

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They must act responsibly and comply with various regulations to take root as providers of safe and secure payment settlements, Amamiya told a Reuters Newsmaker event.

While details of Facebook’s cryptocurrency plan remain sketchy, central banks must be vigilant to the impact such moves could have on their country’s banking and settlement systems, he added.

Bank of Japan Deputy Governor Masayoshi Amamiya
Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo, Japan July 5, 2019. REUTERS/Issei Kato

“As for Libra, we must bear in mind that the potential global user-base could be enormous,” Amamiya said.

“If central bank digital currencies replace private deposits, that could erode commercial banks’ credit channels and have a negative impact on the economy.”

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