Today MUFG confirmed that Japan’s three largest banks, MUFG, SMBC and Mizuho will launch a joint stablecoin by the end of March...
Stablecoins
Japan is one of the leaders in regulated stablecoins. New legislation that came into force in June 2023 allows for three types of stablecoins.
Banks are allowed to issue stablecoins backed by deposits. And in Japan, there is 100% deposit insurance in certain circumstances. That includes Yen deposits for payment purposes that don't carry interest. However, bank issued stablecoins can only be circulated amongst KYC'd entities.
Legislation also supports trust bank issued stablecoins, which don't require KYC'd end users. Trust banks can issue digital currencies for third parties, including in foreign currencies. However, given deposits are likely to be interest bearing, they won't be fully covered by deposit insurance.
Banks say stablecoins should be regulated like banks. Are they right?
Banks and industry associations have argued that paying interest on stablecoins makes them bank-like, so they should be regulated...
Italy’s Bancomat signs up 9 Italian banks for EUR.bank stablecoin
Last year Italy’s Bancomat announced plans for a Euro stablecoin, EUR.bank, and has now named the nine founding bank partners...
ECB highlights need for EU tokenized deposit regulation to avoid fragmentation
State regulators object to Treasury imposing OCC stablecoin rules on states
Visa tests private stablecoin settlement on Canton with Brale. The question is why?
UK House of Lords urges fewer restrictions on bank issued stablecoins
Mastercard expands card settlement hours via stablecoins
