Japan’s economy grows at solid pace in Q1, but Iran war set to upend momentum
Businesstimes News·- Japan's economy grew at an annualized rate of 2.1% in the first quarter, exceeding the market's expected 1.7%. - This growth is now threatened by the energy impacts of the Iranian conflict, with analysts predicting a slowdown in future quarters. - Private consumption increased by 0.3%, while net external demand contributed 0.3 percentage points to growth, despite rising risks from oil price fluctuations and supply disruptions.BOJ's Himino calls for 'holistic approach' on global monetary system
CNA·- On May 16, Japan's Deputy Governor of the Bank of Japan, Ryozo Hino, called for a holistic approach to designing the future global monetary system beyond central bank digital currencies (CBDCs) and stablecoins. - He noted Japan's readiness for both paths, leading in stablecoin legislation and piloting CBDCs, emphasizing the need to include various factors such as technological feasibility and financial stability. - The Bank of Japan has initiated a sandbox project to explore tokenization of reserves for blockchain-based payment solutions, which could facilitate instant settlements and reduce congestion risks during high-stress events.