The world’s first stablecoin pegged to the yen, JPYC, launched in Japan by startup JPYC. The digital assets are fully convertible to the yen and backed by savings and JGBs. The company aims to issue 10 trillion yen worth of JPYC over three years and offer no transaction fees.

JPYC CEO aims to encourage innovation by providing low transaction fees and hopes for global interoperability with potential capital tie-ups. Stablecoins, like JPYC, offer faster and cheaper transactions. U.S. dollar stablecoins dominate the market, accounting for over 99% of global stablecoin supply.

Japan’s three megabanks plan to issue stablecoins, while a former BOJ executive doubts yen stablecoins’ widespread adoption due to the dominance of the U.S. dollar. Policymakers are concerned about stablecoins facilitating funds movement outside regulated systems, potentially undermining commercial banks’ role in global payments.

BOJ Deputy Governor warns stablecoins could replace bank deposits in the global payment system. South Korea and China are also considering introducing their own stablecoins. The future of stablecoins, like JPYC, remains uncertain, with potential regulatory challenges ahead.

Read more at Yahoo Finance: World’s first yen-pegged stablecoin debuts in Japan