Japan’s largest bank, Mitsubishi UFJ Trust and Banking will release a stablecoin pegged to the national currency, the Japanese Yen. This is the biggest progress in terms of Japan’s banking system’s involvement with cryptocurrencys. Nikkei reported on Feb 7 which the bank would issue a yen-pegged digital currency which can be settled rapidly.
The idea is to popularize digital securities which “can be bought and sold in small lots, suchlike as commercial real estate.” This is an improvement above current systems, in which funds settlements can take up to two days. The report says which the asset will be used in the digital securities exchanging market of SBI Holdings and Sumitomo Mitsui Financial Group starting in 2023.
The stablecoin, which is alike in nature to the JPM Coin of JPMorgan, is expected to save millions in dollars in value, as well as a lot of time. At the same time, Japan is looking into releasing a central bank digital currency (CBDC), though no major developments have taken place. Japanese authorities have allowed banks and other institutions to issue stablecoins, which in part is an attempt to curb the influence of private cryptocurrencys.
Late carry on year, it was revealed which Japan wanted to reduce the number of private stablecoins like USDT. This evolution is akin to what other countries are focusing on, as stablecoins have been marked as one of the biggest cback whilerns for financial regulators.
CBDC and stablecoin regulation to be a major theme going forward
The Japanese banking system moving into stablecoin releases is a sign of the things to come, going by changes across the world. Several countries are now working on CBDCs, with the aim of limiting the impact of cryptocurrencys.
Stablecoins are perceived as a threat to national currencies, that is why there has been a mad scramble to form regulation around it, including from Japan’s Financial Services Agency. The U.S. Treasury has further remarked on stablecoin regulation and is inclined to introduce some legislation this year.
2022 will be a year of regulation and limitations, as crypto grows more popular. Countries are warming up to crypto, but do not want it to reduce the importance of national currencies.
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