Japan has taken a major step forward when it comes to stablecoins, with several notable banks testing stablecoin usage on Ethereum-compatible blockchains.
Local media outlets are reporting that domestic banks will issue stablecoins compliant with Japanese laws using a new proof-of-concept.
Banks that will participate include the Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank. The test will initially focus on the issuance and remittance of electronic money, with future plans focusing on a stablecoin system that meets legal requirements. The latter will involve local governments and private companies.
These banks will release their own stablecoins instead of using stablecoins already on the market. The reports note that the stablecoins will function with popular wallets like MetaMask. Furthermore, regulatory authorities in Japan will lift the ban on stablecoins issued overseas this year.
GU Technologies is the company that will develop the system and will use the “Japan Open Chain.” It is completely compatible with Ethereum.
(By Rahul Nambiampurath)
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