October 29, 2025
By Our Correspondent
On Monday, October 27, the world’s first stablecoin linked to the yen will be introduced in Japan. This is a little but important step in a nation where cash and credit cards are the most used forms of payment.
JPYC, a Japanese company, said that it will start issuing stablecoins backed by domestic savings and Japanese government bonds (JGB) that are entirely convertible to the yen.
The action comes after US President Donald Trump’s backing of the industry, which has rekindled interest in the concept of integrating blockchain technology into the mainstream banking system.
China is also thinking about permitting the use of stablecoins backed by yuan, which is indicative of the growing global trend of using digital currencies that are usually linked to fiat currencies and provide quicker and more affordable transactions.
The Nikkei daily revealed earlier this month that Japan’s three megabanks will also jointly issue stablecoins, which could make the digital asset more popular among people who previously preferred cash.
According to the Bank for International Settlements, stablecoins backed by US dollars presently control over 99% of the world’s stablecoin supply.
Japan established regulations in 2023 to permit the issuance of stablecoins in Asia. Additionally, South Korea has promised to permit businesses to launch won-based stablecoins.
Policymakers have voiced concerns that stablecoins could make it easier for money to move outside of regulated banking systems and could weaken the role of commercial banks in international payment flows, despite the fact that a number of financial institutions have declared plans to consider launching stablecoins.
In a speech last week, Bank of Japan (BOJ) deputy governor Ryozo Himino said, “Stablecoins might emerge as a key player in the global payment system, partially replacing the role of bank deposits.” He urged international regulators to adjust to new realities in the financial system.
