No need to exchange currency when going abroad? Japan approves stablecoin JPYC to launch in autumn, reshaping yen payments and the trillion-yen government bond market.

The Japanese Financial Services Agency has approved the issuance of the first yen stablecoin, JPYC, attracting market attention regarding its impact on JGB yields and travel payments. (Background: All sold out! Japan's Bitcoin reserve company Value Creation closed all positions in BTC; what did it see?) (Supplementary background: Real-life FX warrior! Japanese live streamer goes all in on binary options, from 30,000 to 150,000 to 0 yen.) The Japanese Financial Services Agency (FSA) has approved the official issuance of the domestic yen stablecoin JPYC this autumn, which will disrupt a market still dominated by dollar stablecoins globally. This move not only increases digital payment options for the public but also indicates Japan's intention to gain a voice in the stablecoin competition and reduce reliance on foreign currencies through new tools. Japan's approach of "regulating before innovating" According to a report by Nikkei, JPYC was approved under the revised Payment Services Act of 2023, with the Tokyo fintech company JPYC Inc. acting as the licensed remittance service provider for its issuance. Each JPYC is backed by an equivalent yen deposit and Japanese government bonds (JGBs), forming a one-to-one reserve mechanism. This breaks the previous situation in the Japanese market where only dollar stablecoins circulated, highlighting Japan's desire to solidify financial autonomy in the digital asset space. Unlike some countries that adopt a "run first, regulate later" approach, Japan has chosen to guide the market through strict regulations. The approval of JPYC demonstrates that the FSA prioritizes consumer protection and market stability before gradually opening up to new innovations. This framework is considered one of the most rigorous templates globally and is expected to attract domestic banks and securities firms to accelerate research into blockchain and Decentralized Finance (DeFi) services, paving the way for integration between traditional finance and new technologies. Opportunities and challenges coexist After the launch of JPYC, the Japanese market may benefit in terms of payment options and cross-border remittance efficiency. However, whether it can amplify its influence still depends on public acceptance, merchant adoption speed, and the rapidly changing competitive landscape of global stablecoins. Nevertheless, JPYC has already cast a crucial stone: it brings stablecoins from the crypto space into the sovereign bond market, revealing the future intersection of finance—policymakers and market participants will rebalance risk and returns under new tools. If Japan successfully accelerates the promotion of JPYC payments, it could significantly change the market landscape, increasing the actual market demand for yen. People and investors outside Japan are expected to obtain JPYC directly through the services of Tokyo fintech companies, and JPYC is also anticipated to achieve one-click Exchange Currency among various partner banks. If travelers no longer need to exchange yen beforehand but can convert through related apps when needed, it could also change the yen exchange market situation, posing challenges to many banks' physical counters and high foreign currency exchange fees. New momentum for bond buying emerges The inclusion of JGBs in the JPYC reserve pool means that the larger the issuance scale, the stronger the demand for government bonds. JPYC Inc. representative Okabe emphasized this relationship through the X platform, citing the U.S. experience as an example: "Top stablecoin issuers have become important buyers of U.S. government bonds; if Japan follows suit, it is expected to lower yields and reduce government financing costs." When stablecoin issuers participate in the government bond market, the buying structure of traditional institutions will be redistributed, potentially exerting downward pressure on yields, thereby affecting Japan's fiscal and monetary policy flexibility. Related reports Japan's largest Osaka Exchange plans to launch cryptocurrency derivation products, while JPX is simultaneously considering launching a crypto ETF. Metaplanet CEO interview: From Japanese hotels to "Asia MicroStrategy," the path of Bitcoin layout for the stock surging king. Japanese gaming giant Gumi buys 1 billion yen worth of Bitcoin, next steps to push for a crypto fund targeting institutions. <No need to exchange currency when going abroad? Japan approves stablecoin JPYC to hit the road this autumn, reshaping yen payments and the trillion-yen bond market.> This article was first published in BlockTempo, the most influential Blockchain news media.