Japan will become a global hub for stable currencies

 

Japan will become a global hub for stable currencies

The largest financial firm in Japan, Mitsubishi UFJ Financial Group (MUFG), is thinking of releasing stable international currencies on its blockchain platform.

The bank previously revealed plans to introduce such symbols associated with the value of the Japanese yen.

Executive Officer Tatsuya Saito said

The entity is in talks with industry leaders and other companies about the minting of foreign currency-related stablecoins

Like the US dollar.

To do this, you intend to use the blockchain Progmat platform.

Executive Officer added :

• The potential partners in this move

• are many local financial institutions

• leisure companies and other non-financial businesses.

Queries come from foreign organizations, which means that Japan can become a global center for stable currencies, as Saito envisages.

Such financial products were the subject of

• improved scrutiny in the Asian country

• especially after the collapse of

• the UST stable algorithm last year

• causing billions of dollars in investor losses.

Japanese authorities recognized stablecoins as digital funds but said they could only be issued through licensed banks, money transfer agents or credit companies.

Saito praised the recently introduced legislation

as its preservation could bring additional consumer protection:

"Stablecoins can be used with confidence by exporters and users."

Japanese government and Prime Minister Fumio Kishida

• allowed the local cryptocurrency industry to thrive

• by introducing favourable rules. 

t agreed to a policy last summer that should drive the country's Web3 sector.

In addition :

major lobby groups raised their voices on encryption taxes

insisting that the governing body lower rates.

If they wish to be approved :

local companies will be excluded from paying taxes on paper gains on cryptocurrency holdings if they own them for purposes other than short-term deals.

Previous efforts :

• Credit banking company MUFG showed its first interest in

• the matter in February 2022 when exploring

the prospects of launching a stable currency linked to Japan's official currency.

Experts claimed that such a code could allow the entity to strengthen its payment network by settling securities transactions immediately.

These types of cash procedures are currently expensive

and can take two days to complete.