Japan launches the world's first stablecoin pegged to the yen

Japan has launched the world's first stablecoin pegged to the yen, a digital asset whose exchange rate is consistently equal to the national currency. About writes Reuters.

A new cryptocurrency called JPYC has been issued by a Japanese startup of the same name. It is fully backed by domestic savings and Japanese government bonds (JGBs) and can be converted into regular yen.

The company plans to issue 10 trillion yen (approximately $66 billion) worth of stablecoins in three years and expand their use outside of Japan.

At the initial stage, the transactions are expected to be commission-free to stimulate demand, and the startup plans to generate revenue from interest on the bonds.

According to experts, the Japanese market does not yet have the same potential as the US market.

Today, dollar stablecoins supported by the administration Donald Trumpaccount for more than 99% of the global market, according to the Bank for International Settlements.

Tomoyuki Shimoda, the former governor of the Bank of Japan, notes that the mass distribution of yen stablecoins could take two to three years if the country's largest banks join the market.

At the same time, regulators warn that such digital assets can take money out of the banking system's control.

• On September 30, it was reported that the Visa payment system had launched a pilot project that allows the use of stablecoins for pre-financing cross-border payments via the Visa Direct platform.