Finance Circle to Issue Stablecoin in Japan Under New Rules
Allgemein• Circle is considering issuing a stablecoin in Japan, following the enactment of legislation governing stablecoins.
• CEO Jeremy Allaire expressed interest in partnerships in the country, given that new rules have come into effect.
• Japan’s revised Payment Services Act certifies stablecoins backed by legal tender as an “electronic payment method” and allows their issuance.
Circle Considers Issuing Stablecoin in Japan
Circle is considering issuing a stablecoin in Japan, given that legislation governing stablecoins took effect on June 1, the payment services company’s co-founder and CEO Jeremy Allaire said.
Interest from CEO Jeremy Allaire
In an interview with CoinDesk Japan, Allaire said that if stablecoins become more widely used for cross-border trade, foreign currency transactions and global commerce, Japan will become an extremely large market.
Japan’s Stablecoin Bill
Japan’s stablecoin bill makes it one of the first countries to establish a framework for the use of overseas stablecoins, which Allaire considers “the most important thing the government and the Financial Services Agency have done.” He said that Circle is interested in partnerships in Japan, which he visited last month.
New Rules Governing Stablecoins
Stablecoins must be pegged to the yen or other legal tender and guarantee holders the right to redeem them at face value. Only licensed financial institutions like licensed banks, registered money transfer agents and trust companies will be able to issue stablecoins.