Key Points
- The world’s first yen-pegged stablecoin, JPYC, has launched in Japan. A Japanese startup of the same name is issuing it.
- The company aims to issue $66 billion in stablecoin over the next three years.
- The launch is a small but significant step for digital currency in cash-loving Japan.
- Even Japan’s three largest traditional banks are reportedly planning to issue their own stablecoins.
The world’s first stablecoin pegged to the Japanese yen launched on Monday, a small but potentially significant first step into the world of digital currency for a country that still heavily relies on cash.
The new stablecoin, called JPYC, is being issued by a Japanese startup of the same name. It is fully convertible to yen and backed by a mix of domestic savings and Japanese government bonds. The company has an ambitious goal: to issue 10 trillion yen ($66 billion) in the stablecoin over the next three years and to see it used widely, even outside Japan.
To encourage adoption, the company won’t be charging any transaction fees at first. Instead, it plans to make money from the interest it earns on its government bond holdings. “We hope to spur innovation by giving startups access to low transaction and settlement fees,” said CEO Noritaka Okabe.
The launch of a yen-backed stablecoin comes as global interest in the technology is growing. Dollar-pegged stablecoins have exploded in popularity, and even Japan’s three largest traditional banks are reportedly planning to issue their own stablecoins.
However, some experts are skeptical. They point out that the yen doesn’t have the same global clout as the U.S. dollar, which could limit the new stablecoin’s appeal. “There’s a lot of uncertainty on whether yen stablecoins will become widespread in Japan,” said one former Bank of Japan executive.
