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Circle's co-founder and CEO, Jeremy Allaire, revealed that the company is contemplating the issuance of a stablecoin in Japan. This decision comes in light of the recent implementation of legislation regulating stablecoins on June 1.
During an interview with CoinDesk Japan, Allaire expressed his belief that Japan has the potential to become an immensely lucrative market if stablecoins gain broader adoption for cross-border trade, foreign currency transactions, and global commerce.
Japan's stablecoin bill makes it one of the first countries to establish a framework for the use of overseas stablecoins, which Allaire considers “the most important thing the government and the Financial Services Agency have done.”
He mentioned that Circle has expressed keen interest in forging partnerships in Japan following his visit to the country last month.
The revised Payment Services Act in Japan officially recognizes stablecoins backed by legal tender as an authorized "electronic payment method" and grants permission for their issuance.
Stablecoin issuers will be subject to stringent regulations. These regulations will require stablecoins to be tied to the Japanese yen or other official currencies, ensuring that holders have the assurance of redeeming them at their full face value. Only authorized financial institutions, such as licensed banks, registered money transfer agents, and trust companies, will be granted the authority to issue stablecoins.
In December of last year, the Financial Services Agency of the country took steps to lift the prohibition on foreign stablecoins.
Circle has recently acquired a significant license as a Major Payment Institution (MPI) in Singapore, enabling it to provide a broader range of services in the city-state. With this license, Circle can now offer digital payment token services, facilitate cross-border money transfers, and provide domestic money transfer services.
Several prominent Japanese financial institutions have delved into the realm of stablecoins, and Mitsubishi UFJ Trust and Banking Corporation recently made headlines by unveiling its ambitious stablecoin platform named Progmat.
Source Coindesk
