The Bank of Japan sees the potential of stablecoins as a replacement for bank deposits.
Date: 2025-10-22 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS, IN WORLD
The Deputy Governor of the Bank of Japan stated that stablecoins pegged to fiat currencies have the potential to become a fully-fledged alternative to bank deposits. According to him, such tokens enable instant, 24/7 settlements with minimal fees, significantly exceeding the capabilities of traditional banking instruments, the international SWIFT system, and automated clearinghouses (ACH).
The regulator's representative emphasized that the financial industry has already entered a new era, where digital assets occupy a significant place. He called on G20 countries to adapt banking legislation to market realities and implement international standards for regulating stablecoins. In his opinion, without a unified legal framework, the sustainable development of digital currencies will be hampered.
Leading players in the banking sector have already expressed interest in stablecoins in Japan. Three of the country's largest financial institutions—Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank—announced their intention to jointly issue stablecoins pegged to the Japanese yen and the US dollar. The plan is to create a unified platform for payments using these tokens. The initiative aims to reduce transaction costs and improve the efficiency of settlements between businesses.
According to experts, this move could significantly strengthen Japan's position in the global financial system, especially amid growing interest in central bank digital currencies (CBDCs).
Furthermore, earlier this year, Japan's Financial Services Agency (FSA) announced its intention to revise current legislation and recognize certain digital assets as financial instruments regulated similarly to securities. This will allow for the implementation of clearer investor protection rules and ensure operational transparency.
Experts note that such initiatives demonstrate the Japanese authorities' desire to combine innovation and oversight. If legislators can create a flexible yet robust regulatory framework, stablecoins could become an important element of the country's future financial infrastructure.
Thus, Japan is taking a step toward developing a new model of financial relations, one in which digital technologies can not only complement but also partially replace traditional instruments.
