Any fiat money requires trust to gain and maintain the acceptance of those who use it. Indeed, history has shown that confidence in public money is best provided by a trusted issuing authority, that is, an independent central bank issuing safe and stable liabilities that people can access and hold.
Therefore, I would first like to talk about the current conditions of the increasingly important market liquidity in the Japanese financial markets. Then I will touch on the measures for enhancing market stability in Japan, focusing particularly on the improvement of market infrastructure.