Japan's New Finance Minister: Government to Support Three Major Banks in Joint Stablecoin Issuance

① Japan's new Finance Minister, Satsuki Katayama, announced that the Japanese government supports a joint stablecoin project by three major banks; ② Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group plan to jointly issue stablecoins and test cross-border payments; ③ The Japan Financial Services Agency (FSA) will assess whether the service is legal and appropriate. Stablecoins are designed to peg value and avoid the sharp volatility of digital assets.

Japan's new Finance Minister, Satsuki Katayama, who also heads the Financial Services Agency (FSA), stated on Friday (November 7) that the Japanese government has decided to support a project by Japan's three major banks to jointly issue stablecoins.

The minister pointed out at a press conference following a regular cabinet meeting that Japanese authorities have decided to support the project where the country's three major banks will jointly issue stablecoins.

In a statement issued on Friday, Mitsubishi UFJ Financial Group stated that the banking units of Japan's three major financial groups—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group—will jointly issue stablecoins and plan to test these stablecoins for cross-border payments.

Stablecoins are a type of cryptocurrency pegged to fiat currencies (such as the US dollar) or other stable assets (such as gold). Their core objective is to "peg value" and avoid the sharp volatility of digital assets.

Previous reports indicated that the Japan Financial Services Agency is set to approve the issuance of the country's first stablecoin pegged to yen-denominated assets as early as this autumn, aiming for use in areas such as international remittances.

Just last week, Japanese startup JPYC launched the world's first yen-backed stablecoin, priced at 1 JPYC fixed to 1 yen, supported by yen deposits and Japanese government bonds as backing assets for these coins. This is a significant move for Japan, where traditional payment methods like cash and credit cards dominate.