In the words of Jeremy Allaire, “We hope that Japanese companies, financial intermediaries, digital asset exchanges and fintech companies will be able to use USDC. Of course, we are carefully considering the new rules and how the USDC will be used in the Japanese market.”
In a recent interview with CoinDesk, Circle CEO Jeremy Allaire said the company may issue a new stablecoin in Japan weeks after Japan’s landmark framework for the regulation of stablecoins came into effect.
According to Jeremy, Japan could become a major crypto marketplace if stablecoins gained popularity as means of cross-country payments. Praising the government’s initiative to establish a framework for stablecoins, he acknowledged that Circle is interested in partnering with Japanese firms.
The CEO of Circle also cited stablecoins pegged to Yen as "a new opportunity.” He further claimed that Circle is in the process of gauging the demand for a Yen-linked stablecoin, adding,
“Japan could be one of the most dynamic markets in the world for Web3 technology.”
Earlier in 2022, Japanese regulators passed a bill to restrict stablecoin issuance to trust companies and licensed banking institutions. It also mandated stablecoins to be pegged to a legal tender such as the Japanese Yen.
The aim behind passing the legal framework was to protect investors from the uncertainty in the stablecoin market that was triggered by the crash of TerraUSD (UST). The changes proposed by the bill officially took effect on June 1, 2023.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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