Japan is expected to launch its initial stablecoin connected to the yen by the end of the year, with approval from local regulators. Fintech company JPYC is currently undergoing registration as a money transfer firm with the Financial Services Agency (FSA) and plans to commence token issuance soon after obtaining regulatory clearance.
The JPYC stablecoin plans to be pegged to the Japanese yen at a 1:1 ratio, backed by assets like bank deposits and government bonds. The company aims to release around 1 trillion yen ($6.78 billion) in three years for various uses like international transfers, business transactions, and DeFi applications. Hedge funds have already shown interest in this initiative.
There are currently three stablecoins linked to the yen, but none are from a Japanese company. The significant difference will be the approval from the FSA, making it a stablecoin overseen by the organization. This could lead to increased adoption by institutional investors.
In 2022, Japan introduced regulations for stablecoins by amending the Payment Services Act to classify them as legitimate electronic payment tools. Authorized entities like banks, trustees, and approved companies are now the only ones permitted to issue these digital assets.
Global developments are being mirrored by the movement towards establishing regulations for stablecoins in the United States, the European Union, and Hong Kong. Stablecoins are increasingly popular for providing a secure digital substitute for conventional currencies.
Cryptocurrency market performance.
The cryptocurrency market began the week with a decline, as Bitcoin traded at US$115,036 (R$620.298), dropping 2.7% due to profit-taking. Ethereum and XRP also experienced declines of over 5%. Over $484 million in long positions were closed in the past 24 hours. Market focus now shifts to the upcoming Fed symposium on Thursday (21), which could impact future market trends.
Cryptocurrencies experienced a decline in value at 8:33 p.m.
Bitcoin (BTC) has decreased by 2.87% to US$ 115,017.19.
Ethereum (ETH) has dropped by 6.57% to US$4,262.62.
XRP (XRP) has decreased by 5.09% to $2.97.
BNB (BNB) dropped by 3.36% to $831.55.
Solana’s value has decreased by 6.49% to US$ 180.75.
Other notable moments of the day:
TRON (TRX) has decreased by 1.94% to $0.3462.
Top stories in the cryptocurrency market
A company associated with the Trump family is targeting Asia to increase its Bitcoin holdings. The American mining company, connected to Donald Trump Jr. and Eric Trump, is considering acquiring companies in Japan and Hong Kong to strengthen its Bitcoin position, following a similar strategy. The company aims to purchase at least one publicly traded company in the region to enhance its treasury model. With 215 BTC already in its possession, American Bitcoin recently secured $200 million to expand its reserves and mining infrastructure. This move aligns with the trend of companies accumulating Bitcoin as a long-term investment amid concerns about inflation and currency devaluation. Currently, publicly listed companies hold over 976,000 BTC in the market.
Thailand has introduced a digital wallet for tourists that includes a cryptocurrency feature for payments. The wallet enables foreign tourists to make purchases using QR codes in the local currency, baht. It can be funded with cash, international cards, or bank transfers, but the conversion of cryptocurrencies to baht is still in a regulatory sandbox phase for evaluation by financial authorities. Results of this assessment are expected by the end of August.
