| Key Aspect | Details |
|---|---|
| Event | Japan launches world's first yen-pegged stablecoin, JPYC, on October 27, 2025. |
| Issuer | JPYC Inc., a Tokyo-based startup. |
| Backing | Fully backed by Japanese yen and government bonds (JGBs). |
| Initial Features | Offers zero transaction fees during the initial rollout phase. |
| Market Target | Aims to issue up to 10 trillion yen ($66 billion) over the next three years. |
| Purpose | Designed as a low-cost, fast, and secure digital payment method, targeting startups and international businesses. |
| Global Context | Challenges the dominance of U.S. dollar-backed stablecoins, which comprise 99% of the stablecoin market. |
| Policy Concerns | Bank of Japan (BOJ) highlights risks, such as undermining commercial banks' roles and facilitating unregulated fund transfers. |
| Regulatory Outlook | BOJ Deputy Governor Ryozo Himino warns stablecoins might partially replace bank deposits and urges global regulators to prepare for such shifts. |
| Domestic Adoption | Potential slow adoption compared to U.S. counterparts, but involvement of Japan's three megabanks could accelerate adoption within 2-3 years. |
| Regional Competition | South Korea plans won-based stablecoins; China explores yuan-backed digital tokens, indicating a regional race for digital currency leadership. |
| Historical Context | Follows the introduction of new yen banknotes in 2024, showcasing Japan's parallel focus on both traditional and digital currency forms. |
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