Bank of Japan

Definition ∞ The Bank of Japan is the central bank of Japan, responsible for issuing currency, implementing monetary policy, and maintaining financial system stability. It manages interest rates, conducts open market operations, and oversees the nation’s payment systems. Its primary objective is to achieve price stability and ensure the smooth functioning of financial markets.
Context ∞ The Bank of Japan’s monetary policy decisions, particularly regarding interest rates and quantitative easing, significantly influence global currency markets and investor sentiment. Its stance on digital currencies, including research into a central bank digital currency (CBDC), directly impacts the regulatory landscape and adoption prospects for digital assets in Japan. News reports on its policy meetings provide critical insights for crypto market analysis.