Speaking in a recent interview, Circle CEO Jeremy Allaire said they are interested

 

Speaking in a recent interview, Circle CEO Jeremy Allaire said they are interested in issuing a stablecoin in Japan, nearly one month after he visited the country.  Allaire also stated that Japan would become an extremely large market when stablecoins started being widely used in cross-border trade, foreign currency transactions, and global commerce.  Circle's CEO defined Japan's legal framework for stablecoins as the most important thing the government and the Japan Financial Services Agency (JFSA), the country's financial market regulator, have done.  Japan's Payment Services Act entered into force on June 1, making the country one of the first nations to establish a framework for stablecoins.  The legislation legalizes stablecoins backed by legal tender to be issued and used as an electronic payment method.  However, the bill requires stablecoins to be pegged to the Japanese yen or another legal tender and the issuers to ensure that holders can redeem them at face value.  The act authorizes only licensed financial institutions, such as licensed banks, registered money transfer agents, and trust companies, to issue stablecoins. Circle is the issuer of USD Coin (USDC), the second-largest stablecoin by market cap.