Bank of Japan Calls for Stablecoin Adoption in Global Finance Shift

TLDR

• The Bank of Japan Deputy Governor emphasized the growing importance of stablecoins in the global financial system.
• He stated that stablecoins could partially replace traditional bank deposits due to their speed and cost efficiency.
• The Bank of Japan has urged global regulators to modernize financial rules and adopt frameworks that are more stablecoin-friendly.
• Japanese regulators have recently approved reforms aimed at easing stablecoin issuance and supporting digital financial innovation.
• Central Japanese banks, including MUFG, SMBC, and Mizuho announced plans to launch a yen-pegged stablecoin.

The Bank of Japan has reinforced the significance of stablecoin integration in the financial system amid global economic shifts. Deputy Governor Ryozo Himino emphasized that stablecoins could reshape global payments and partially replace traditional bank deposits. His statement follows increasing efforts by Japanese banks to embrace digital currencies pegged to the yen.

Stablecoins Positioned to Redefine Banking Functions

Bank of Japan Deputy Governor Ryozo Himino addressed the evolving financial landscape during the 2025 GZERO Summit Japan. He asserted that stablecoins offer faster settlement, lower transaction costs, and 24/7 transfer capability, unlike traditional bank systems. Therefore, he urged regulators to align policies with these new digital tools.

He stated, “Stablecoins may soon begin to serve functions traditionally managed by bank deposits.” He added that financial authorities must adapt. Himino highlighted that stablecoins can outperform legacy systems such as SWIFT and ACH in speed and efficiency.

The Deputy Governor also called attention to the growing influence of non-bank financial institutions. He pointed out that financial regulation must evolve with such structural shifts. He stressed the urgency for G20 nations to implement delayed Basel 3 standards.

In early 2025, Japan’s Financial Services Agency approved regulatory reforms to support stablecoin issuance and trading. The changes aim to promote innovation in Japan’s financial sector. This move marks a clear policy shift to embrace digital assets and blockchain-based platforms.

Japanese banks have responded positively to these reforms. Several major institutions are now advancing their stablecoin projects. The national policy direction supports their efforts to digitize the yen for global competitiveness.

Fintech startup JPYC received approval to launch the first officially recognized yen-pegged stablecoin. The JPYC token is tied to the Japanese yen. This approval further strengthens Japan’s commitment to a stablecoin-supported financial system.

Top Banks in Japan Launch Yen-Pegged Stablecoin Project

Three major banks MUFG, SMBC, and Mizuho have joined to develop a stablecoin pegged to the yen. Their collaboration includes creating a unified platform for digital settlements. The platform aims to reduce cross-border transaction costs and improve business efficiency.

MUFG will manage issuance through its blockchain system Progmat. The initiative plans to unify stablecoin governance. This project is a significant step in modernizing Japan’s financial infrastructure.

SMBC is also preparing to issue a stablecoin in partnership with Avalanche and Fireblocks. They plan to run pilot tests by early 2026. These actions show growing bank-level commitment to stablecoin development.

Monex Group has expressed interest in launching its own stablecoin. Although no formal release date is confirmed, it plans to use Japanese government bonds as reserves. This proposal adds to Japan’s broader momentum toward stablecoin integration.

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