Japan’s FSA Supports Stablecoin Backed by Major Banks
Japan’s Financial Services Agency (FSA) has announced plans to back a stablecoin project supported by three leading banks in the country. The initiative aims to promote digital payments while maintaining the use of credit cards and cash in Japan.
Official Statements and Support
Finance Minister Satsuki Katayama mentioned on November 7 that there is growing momentum to support digital payments. He stated after a cabinet meeting that the banking divisions of Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group (MFG) will jointly issue stablecoins.
He pointed out the stablecoins will be tested for cross-border payments after assessment and approval by the FSA, ensuring legal and proper implementation.
Goals and Collaboration
The three megabanks, which reportedly have over 300,000 key business partners, revealed their plans to launch stablecoins almost three weeks prior. They emphasized that the collaboration aims to popularize stablecoins in Japan and establish a standard for cross-border transactions and corporate clients.
Future Plans and Testing
The Mitsubishi Corporation will lead the first pilot application. The banks have announced that they will soon launch a yen-backed stablecoin, ensuring a 1:1 value redemption ratio. Additionally, they are considering extending the project to U.S.
Author's Summary
Japan’s major banks are collaborating on a yen-backed stablecoin, aiming to boost digital payments, facilitate cross-border transactions, and set new standards in financial technology regulation.