Allaire said that Japan could become a major market if stablecoin becomes more widely used for cross-border trade, foreign exchange transactions and global trade. The specialist also said that Circle is open to partnerships with Japan.
The new bill would certify stablecoins as a means of electronic payment and authorise their emission. However, issuers will need to follow strict rules. Stablecoins must be linked to the yen and guarantee their owners the right to repurchase them as nominal value. Only licensed financial institutions, such as banks and trust companies, are allowed to release the coins.
As a reminder, Circle recently received a Major Payment Institution (MPI) license in Singapore, which allows tokens to be used for cross-border and internal money transfers in the state.
Meanwhile, as the major Japanese financial institutions are exploring the use of stablecoins, Mitsubishi UFJ Trust and Banking Corporation has announced their plans to launch their own stablecoin platform called Progmat.