Circle is considering introducing a stable coin bound to the yen after new legislation in Japan
Circle is considering introducing a stable coin bound to the yen after new legislation in Japan
Circle, a company for digital payments, is considering the introduction of a stable coin bound to the yen. This step is followed by the new law on the regulation of digital currencies, which was issued in Japan on June 1st. According to CEO and co -founder of Circle, Jeremy Allaire, Japan could become a large market for stable coins, especially for cross -border transfers, international trade and foreign exchange transactions.
Japan is the first country to introduce a special legal framework for stable coins. This creates a clear structure for the use of stable coins such as the USD Coin (USDC) from Circle or Tether (USDT) abroad. Allaire sees this as a historical step of the Japanese government and tax authority and is currently examining partnerships in Japan.
Lately Circle has intensified his activities in Asia. The company recently received a license from the Singapore government as a significant payment service provider. As a result, circle can offer domestic and cross -border money transfers and services for digital payments.
According to the revised law for payment services in Japan, stable coins are classified as a "electronic payment method". In contrast to other cryptocurrencies, they minimize price fluctuations by binding their value to the price of another asset, usually a Fiat currency like the US dollar. This creates stability and enables stable coins to act as a reliable exchange in the crypto ecosystem.
Due to their potential advantages over conventional cryptocurrencies,stable coins have gained popularity. This includes faster cross -border transactions, lower fees and improved access to decentralized financial applications (Defi).
The new Japanese law defines strict rules for the issuers of stable coins. These must be linked to the state currency Yen or another Fiat currency and guarantee the right to repayment to the nominal value. Only licensed banks, trustees and registered money transfer service providers are allowed to publish stable coins in Japan.
Last year, the Japanese Financial Service Agency lifted the ban on the use of stable coins abroad. In addition to circle, other Japanese companies such as the Mitsubishi UFJ Trust and Banking Corporation also explore the possibilities of stablecoins and plan the introduction of their own stable coin platforms, such as the Progmat platform.