The public authorities, in coordination with other domestic and foreign authorities, need to address various challenges posed by GSCs, including the tragedy of the commons. III. Reform of Retail Payment Systems As described above, GSCs could have significant implications for the international monetary system and settlement system. They should not begin operation until the various challenges and risks are adequately addressed.
At the same time, I would like to assert that the Bank of Japan takes the position of promoting private sector innovations. The recent GSC initiative has posed us challenging questions: What are the shortcomings of the existing payment services? What are the remedies?