Japan’s startup JPYC Inc. is preparing to launch the country’s first stablecoin pegged to the Japanese yen. This digital currency will also be called JPYC. This is an important step in the cryptocurrency world because, unlike volatile cryptocurrencies, stablecoins maintain a stable value.
For example, the price of Bitcoin often fluctuates, but one JPYC stablecoin will always be equal to 1 Japanese yen.
According to Noritaka Okabe, CEO of JPYC, the value of this stablecoin will be fully backed by Japanese government bonds and domestic deposits. This means users can be confident that its value will not change while using it.
Interestingly, JPYC will charge no transaction fees. The startup will issue the stablecoins and use the proceeds to buy government bonds. The interest earned from these bonds will become the company’s revenue.
Initially, this digital currency will be used by investors, financial companies, and funds within Japan. However, in the future, the goal is to make JPYC accessible globally as a “digital yen.”
This development highlights the important role stablecoins play in the global financial system. For example:
- The United States is already preparing legislation to allow the use of stablecoins in daily payments.
- Major financial companies like Bank of America are preparing to issue their own dollar-backed digital currencies.
- Meanwhile, China is strengthening its regulation of the crypto market and limiting interest in stablecoins.
This situation shows that each country approaches digital currencies differently, but Japan’s move positions it as one of the leading countries in this field.
