Japan Prepares to Launch First Regulated Yen-Pegged Stablecoin: Impact on Financial System and Global Market

Japan is set to launch its first regulated yen-denominated stablecoin, JPYC, expected to receive approval this fall. Backed by bank deposits and Japanese government bonds, this digital currency promises transparency and stability. JPYC will be issued through a licensed money-transfer business framework, allowing individuals and corporations direct access to tokens in exchange for yen. Each token is one-to-one backed ensuring security and ease of conversion to the Japanese currency. Instead of transaction fees, the issuer will earn revenue from interest on its holdings of government bonds.