Around July 2021 Japanese supervisors had criticized stablecoins and agreed with Federal Reserves chairman Jerome Powell to tighten laws against the production of fiat currency-backed assets.
But today the opposite happened when Japan’s largest bank, Mitsubishi UFJ Trust and Banking announced the issuance of yen -backed stablecoin.
This is a positive development in the financial ecosystem in the country as the system involves the influence of cryptocurrencies.
It is understood that this project resembles JPMorgan's stablecoin, 'JPM Coin'.
Three benefits that can be the focus of this project include:
Saves time
Financial settlement can be implemented within two days
Save on financial allocations
Expected to be used in the securities asset trading market of SBI Holdings and Sumitomo Mitsui Financial Group starting 2023.
Perhaps many are wondering why the country is seen making a u-turn in the acceptance of cryptocurrencies. The fact is that the stablecoin project is able to address the influence of private cryptocurrencies such as Ethereum (ETH), Bitcoin (BTC), and XRP.
At the same time, the country of the rising sun is looking for opportunities to launch a central bank digital currency (CBDC). But until the publication of this article, there are still no exciting developments related to the digital yen.
In any case, it has been identified that these two types of digital assets will face strict legislation under the supervision of Japan’s Financial Services Agency (FSA).
Based on a statement from the United States Treasury (US), legislation on stablecoin will be tabled later this year.
