The Deputy Governor of the Bank of Japan spoke of the importance of adapting to ever-changing financial conditions, especially the rise of stablecoins in the global economy.
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- Bank of Japan Deputy Governor Norami Himi emphasized that stablecoins could play an important role in the global payment system and could eventually partially replace some traditional bank deposits.
- Major Japanese banks such as MUFG, SMBC, and Mizuho are already moving toward issuing yen-pegged stablecoins and developing unified payment platforms.
On October 21, Bank of Japan Deputy Governor Ryozo Himino told Reuters that he believes stablecoins will play an important role in the global payment system. Therefore, he emphasized the importance of adopting stablecoins in the current financial climate.
Not only that, Himino predicted that stablecoins will one day grow to the point where they partially replace the function of bank deposits. This is because, unlike traditional bank deposits, stablecoins offer customers faster payments, lower fees, and 24-hour money transfer capabilities. Such mechanisms are beyond the capabilities of traditional banks and legacy systems such as SWIFT and ACH.
The positive sentiment towards stablecoins may reflect widespread acceptance among central bankers, as Himino appealed to global regulators to start adapting to the “new reality” of financial systems.
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The Bank of Japan deputy governor cited the emergence of stablecoins and the increasing proportion of assets held by non-bank financial institutions as examples of how rapidly the global financial system is changing.
In his speech at the 2025 GZERO Summit in Japan, Himino called on major G20 countries to get serious about implementing Basel 3 regulations for their banking systems, but he claims the process has been repeatedly delayed by governments. Most recently, countries such as Singapore and parts of the European Union have reportedly delayed implementation of Basel 3 rules regarding cryptocurrencies and banking.
“Regulators are doing a lot of work in these areas, but more needs to be done,” Himino said.
He added: “We must continue to modernize international prudential standards to respond to new realities.”
Japanese regulators are showing signs of loosening government frameworks to better accommodate emerging technologies in Japan’s financial system. In February 2025, Japan’s Financial Services Agency greenlit a report detailing reforms to ease crypto regulations related to stablecoin issuance and crypto intermediation.
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Bank of Japan signals: Are banks becoming bullish on stablecoins?
Even before the Bank of Japan announced its support for stablecoins, many major banking institutions had begun issuing yen-pegged stablecoins to counter the dominance of the US dollar.
Earlier this month, three major Japanese financial institutions came together to plan to issue a stablecoin pegged to the Japanese yen. The partnership involves Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group.
Additionally, the joint venture aims to create a single platform for stablecoin payments. The platform helps streamline payment processes and reduce costs for businesses by enabling smoother cross-border transactions. The project’s stablecoin issuance and governance will be managed by MUFG’s blockchain infrastructure Progmat.
SMBC, one of the banks participating in the project, also plans to launch a stablecoin backed by crypto projects Avalanche and Fireblocks. The partnership aims to conduct trials of the new stablecoin project in the fourth quarter of 2025 or early 2026.
In August 2025, Japanese financial services company Monex Group expressed interest in issuing a yen-pegged stablecoin. However, other than a plan to back up assets with government bonds, no concrete plans have been formulated at this time.
Meanwhile, Japan’s Financial Services Agency previously approved the first yen-pegged stablecoin issued by fintech startup JPYC. The stablecoin, called JPYC, is expected to be deployed as the first official digital currency tied to a local currency.
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