Bank of Japan Deputy Governor Ryozo Himino highlighted the growing significance of stablecoins in the evolving financial world, suggesting they could eventually take on roles traditionally held by bank deposits. Speaking to Reuters, Himino noted that stablecoins provide faster settlements, lower fees, and 24/7 transfer capabilities, which legacy systems like SWIFT and ACH lack.
He emphasized that the financial system must adapt to these innovations and update regulatory frameworks like Basel III, which he sees as lagging behind the pace of digital transformation. Himino urged for a more agile regulatory response that reflects the realities of decentralized technologies.
Bank of Japan Works to Issue Yen-Backed Stablecoin
Domestically, Japan’s top banks—including MUFG, SMBC, and Mizuho—are actively working to issue yen-backed stablecoins. These initiatives include developing a unified payment infrastructure that could improve efficiency and reduce costs across sectors. Such efforts align with recent shifts in Japan’s regulatory environment.
He emphasized that the financial system must adapt to these innovations and update regulatory frameworks like Basel III, which he sees as lagging behind the pace of digital transformation. Himino urged for a more agile regulatory response that reflects the realities of decentralized technologies.
