Kuroda also said that the Bank of Japan is closely watching the development of cryptocurrency transactions to ensure they do not erode public confidence in the security of the current settlement system regulated by the central bank.
'Cryptocurrencies are not legal tender and do not have assets that support their value,' said Kuroda in Congress, adding that the likelihood of cryptocurrencies threatening the global trust in the legal currency such as the yen is low.
Prior to his remarks, Kuroda urged policymakers around the world to take concerted action to regulate cryptocurrencies such as bitcoin, and the proliferation of cryptocurrencies, coupled with the increase in transaction volume, attracted the attention of all parties.
When the Group of 20 (G20) finance leaders met in Buenos Aires in March, they expected to discuss the impact of cryptocurrencies.