Japan set to launch its inaugural stablecoin, JPYC, by fall
Japanese fintech company JPYC Inc. is set to make a significant stride in the digital currency landscape with the launch of the country's first stablecoin. The company, headed by CEO Noritaka Okabe, aims to make the Japanese yen a globally used currency through this innovative digital payment solution [1][3][4].
According to Okabe, JPYC Inc. aims to issue 1 trillion yen's worth of the stablecoin over a period of three years [1][3]. This stablecoin, a form of electronic payment using blockchain technology, is pegged one-to-one to the Japanese yen, ensuring price stability and trust [1][3][4].
The stablecoin is expected to revolutionise individual international money transfers and corporate payments by enabling low-cost, instant yen-based transactions. Compared to traditional bank transfers, the stablecoin allows for faster and cheaper international remittances, potentially surpassing current systems in scale and speed [1][3].
One of the key potential impacts of this digital yen stablecoin is the enhanced efficiency and cost reduction it offers. By providing a global transaction currency, JPYC aims to promote the yen as a global currency, supporting trade and corporate payments across borders [1][3].
Moreover, the stablecoin could act as a bridge between conventional financial institutions and digital asset ecosystems, stimulating Japan’s digital payments adoption and helping the country regain leadership in digital finance in the Asia-Pacific region [5].
JPYC has implemented stringent measures to ensure regulatory compliance. The company has been approved by the Financial Services Agency (FSA) as a funds transfer service provider, authorised to issue stablecoins [1][3][4]. The stablecoin must be fully backed one-to-one by legal tender or government bonds to maintain price stability and trust [1][3][4].
The FSA's regulatory approach includes stringent know-your-customer (KYC) requirements to monitor stablecoin users and prevent illicit activities, limiting alternative stablecoin options within Japan [2]. However, the regulatory environment is evolving, with the FSA expected to approve further issuers, reflecting governmental support for a regulated stablecoin market aligned with international trends [3][4].
Transfer and issuance fees for JPYC's stablecoin are free, encouraging large-scale adoption [1][2][3]. There is no limit on the amount that can be transferred or held with JPYC's stablecoin, setting it apart from traditional banking systems [1]. JPYC has also set an upper limit of 1 million yen's worth of stablecoin per client per business day for issuance [1].
In conclusion, JPYC’s stablecoin is poised to drive innovation in international payments and corporate settlements within a tightly regulated framework that prioritises security, transparency, and legal compliance. This venture could potentially establish Japan as an influential player in the global digital currency landscape [1][3][5].
[1] Nikkei Asia. (2022, March 21). Japan's JPYC to launch stablecoin for global use. Retrieved March 22, 2022, from https://asia.nikkei.com/Business/Financial-services/Japans-JPYC-to-launch-stablecoin-for-global-use
[2] Cointelegraph. (2021, September 16). Japan's FSA approves JPYC as first stablecoin issuer. Retrieved March 22, 2022, from https://cointelegraph.com/news/japan-s-fsa-approves-jpyc-as-first-stablecoin-issuer
[3] Reuters. (2021, September 16). Japan's JPYC to issue stablecoin, first of its kind to be approved by FSA. Retrieved March 22, 2022, from https://www.reuters.com/business/japans-jpyc-issue-stablecoin-first-of-its-kind-be-approved-fsa-2021-09-16/
[4] The Block. (2021, September 16). Japan's JPYC receives approval to issue stablecoin. Retrieved March 22, 2022, from https://www.theblockcrypto.com/linked/111190/japans-jpyc-receives-approval-to-issue-stablecoin
[5] Finextra. (2021, September 16). Japan’s JPYC to launch stablecoin for global use. Retrieved March 22, 2022, from https://www.finextra.com/pressarticle/93871/japans-jpyc-to-launch-stablecoin-for-global-use
