Japan has announced a significant development in the cryptocurrency and web3 space with the issuance of the world's first yen-pegged stablecoin, according to Reuters.
The Japanese fintech firm JPYC stated that its stablecoin, also named JPYC, is fully backed by domestic deposits and Japanese government bonds. It is designed to be 1:1 exchangeable with the Japanese yen.
JPYC has announced that its stablecoin will be 1:1 exchangeable with yen and will not charge any transaction fees. The company plans to generate revenue through interest income derived from Japanese government bonds.
The JPYC stablecoin will operate on the Ethereum (ETH), Avalanche (AVAX), and Polygon networks. It has been reported that numerous Japanese companies are expected to begin integrating this stablecoin into their existing systems.
Context and Industry Sentiment
This development aligns with recent statements from the Bank of Japan (BOJ). Vice Governor Ryuzo Himino remarked last week that "stablecoins can play an important role in global payment systems." He also emphasized the necessity of adapting global regulations for stablecoins to be effectively utilized within the country.
Broader Developments in Japan's Crypto Sector
Positive advancements continue to emerge within Japan's cryptocurrency sector. Quantum Solutions, a company listed on the Tokyo Stock Exchange, recently announced its acquisition of 2,365 ETH within a single week. This move positions them as Japan's largest Ethereum treasury company.