Blog Layout

MUFG Sets the Stage: Japan's Largest Bank Embraces Global Stablecoin Issuance

Jun 23, 2023

Japan's Largest Bank, Mitsubishi UFJ (MUFG), Embraces Global Stablecoin Issuance

In a significant move that underscores the evolving landscape of digital currencies, Mitsubishi UFJ (MUFG), Japan's largest banking group, has embarked on discussions with stablecoin issuers to encourage them to utilise its blockchain platform. This strategic initiative comes in the wake of Japan's recent relaxation of regulations surrounding stablecoins, opening up avenues for licensed financial institutions and registered money transfer agencies to issue such tokens.


MUFG is actively engaging with stablecoin issuers, as well as entertainment companies and non-financial businesses, to foster collaboration on stablecoin projects. The bank's efforts align with the implementation of Japan's stablecoin law, which came into effect on June 1, signalling a significant milestone in the country's regulatory framework for digital currencies. However, it should be noted that the law only permits the issuance and use of stablecoins that are fully backed by fiat currencies.


Tatsuya Saito, MUFG's Vice President of Product, highlighted the newfound confidence engendered by the legislation, stating, "Issuers and users can feel safe using stablecoins now that the legislation is in effect." With the new law allowing stablecoins to be denominated in various currencies, including the US dollar, Saito emphasised the potential for issuing tokens geared towards overseas usage.


These favourable policies coincide with Japan's broader efforts to ease restrictions on cryptocurrencies. MUFG recently unveiled the Prograt Coin platform, enabling banks in Japan to launch stablecoins on public blockchains like Ethereum. This milestone achievement was made possible through collaboration with TOKI, a company specialising in cross-chain bridge development, and Datachain.


Japan's journey towards comprehensive stablecoin regulation began in 2022 with the introduction of a registration system for stablecoins and the facilitation of overseas businesses issuing such tokens in the country through digital asset custodians. These measures were enacted as part of a bill aimed at regulating cryptocurrencies tied to the yen and other currencies.


The focus on managing financial system risks associated with stablecoins has been a priority for Japan, reflecting a concerted effort to safeguard investors amidst the rising prominence of these digital assets. With MUFG taking a proactive stance in facilitating stablecoin issuance on its blockchain platform, it remains to be seen how this development will shape the future of stablecoins in Japan and beyond. As digital currencies continue to reshape the financial landscape, Japan's progressive approach positions the nation as a frontrunner in embracing the opportunities and challenges posed by stablecoins.


Disclaimer:


GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.


Affiliate Disclosure / Sponsored Posts:


If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.


Before you invest in Cryptoassets you should be aware of the following,


Cryptoassets are considered very high risk, speculative investments.


If you invest in Cryptoassets you should be prepared to lose all your money.


All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.


The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com. 


If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation


BIS Global Stablecoins

BIS Proposes Recommendations to Regulate Global Stablecoins

07 Mar, 2024
In response to the increasing prominence of global stablecoins (GSCs) and their potential implications for financial stability, the Bank for International Settlements (BIS) has introduced a comprehensive set of recommendations aimed at regulating and supervising these widely adopted digital assets.
Congress Emblem

Stablecoin Bill Advances Amidst White House Opposition

29 Jul, 2023
In a noteworthy development within the U.S. Congress, a long-awaited stablecoin bill made significant progress as it graduated from the House Financial Services Committee. However, the advancement of the Republican-backed bill was marred by a partisan clash and objections from the White House, leaving the committee chair, Patrick McHenry (R-N.C.), lamenting the missed opportunity for a bipartisan deal.
US Congress Stablecoins Bill

Lummis and Gillibrand Target Stablecoins in Sweeping Crypto Regulation Proposal

13 Jul, 2023
A new crypto oversight bill reintroduced by Senators Cynthia Lummis and Kirsten Gillibrand is making waves in the U.S. Senate. The bill proposes that crypto exchanges be overseen by the Commodity Futures Trading Commission (CFTC) rather than the U.S. Securities and Exchange Commission (SEC). Additionally, it calls for all stablecoin issuers to be regulated depository institutions. This bill represents a significant effort to establish U.S. regulation for the crypto industry and addresses the division of oversight between the SEC and CFTC.
Financial Stability Board Global Stablecoins GSC

FSB's Klaas Knot Urges Global Action on Stablecoin Regulation at G20 Summit

13 Jul, 2023
In preparation for the upcoming G20 Finance Ministers and Central Bank Governors meeting in India, Klaas Knot, Chair of the Financial Stability Board (FSB), has highlighted the recent banking turmoil and the FSB's commitment to learning valuable lessons from these events. In a letter addressed to the G20 officials, Knot emphasized the importance of addressing risks associated with crypto-assets and global stablecoin arrangements, as well as providing updates on efforts to tackle climate-related financial risks.
European Banking Authority Stablecoins E-money Tokens

E-money Token Issuers Urged to Anticipate MiCA Rules by EU Banking Authority

12 Jul, 2023
E-Money Token (Stablecoin) issuers have been advised to proactively prepare for the forthcoming regulations set by the European Union, according to the European Banking Authority (EBA). Although the rules of the Markets in Crypto Assets (MiCA) framework will officially come into effect in June 2024, the EBA emphasised the importance of early preparation to protect consumers and avoid disruptions for companies. The MiCA regulation includes provisions on governance, reserve requirements, and licensing for crypto wallet providers and exchanges.

Stablecoin Use Set to Surge, Says Juniper Research

12 Jul, 2023
According to a recent study by Juniper Research, the value of payment transactions made with stablecoins is predicted to surpass $187 billion by 2028, a significant increase from $53 billion in 2023. The study, titled "CBDCS & STABLECOINS: KEY OPPORTUNITIES, REGIONAL ANALYSIS & MARKET FORECASTS 2023-2030," highlights the rapid progress of stablecoins in the cross-border market, where they offer an alternative to slow, expensive, and difficult-to-track existing payment systems.
RBI CBDC

RBI Advocates for CBDC-based Global Financial System

12 Jul, 2023
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar expressed India's concerns about stablecoins, emphasising their potential threat to policy sovereignty. In a speech at a banking event, Sankar called for a global financial system based on central bank digital currencies (CBDCs) issued by each country for settling global payments. He highlighted the importance of CBDCs in maintaining financial stability and independence, stating, "We should ideally aim for a global financial system which rests on central bank digital currencies (CBDCs) issued by each country to settle global payments, and not rely on stablecoins."
Bank of England Stablecoins

Stablecoins Poised for Integration, Says BOE Governor

11 Jul, 2023
In a speech delivered on July 10, Bank of England (BOE) Governor Andrew Bailey shared his perspective on digital currencies, highlighting the potential of "enhanced digital money" while expressing reservations about cryptocurrencies and stablecoins. Bailey emphasised the need for regulatory oversight, stability, and usability in the evolving financial landscape.

Hong Kong's HKDG Stablecoin Aims to De-Dollarise the Digital Economy

06 Jul, 2023
In a move that could reshape the global stablecoin market, Hong Kong is considering the launch of its own stablecoin, HKDG, to rival established stablecoins such as USDT and USDC. This groundbreaking proposal, co-authored by prominent figures in academia and industry, including Vice Chancellor Wang Yang and angel investor Cai Wensheng, aims to enhance Hong Kong's position in the digital currency landscape and assert its leadership in the blockchain sector.
The Parliamentary Standing Committee on Industry and Technology (INDU) Stablecoins

Canadian Lawmakers Rally Behind Crypto and Push for Innovative Stablecoin Regulation

30 Jun, 2023
Canadian lawmakers have published a groundbreaking report that defends and supports the crypto industry, calling for the recognition of blockchain as a growing sector with the potential to drive job creation and economic growth. The report, which includes 16 recommendations, has garnered praise from industry participants, including leading cryptocurrency exchange Coinbase.
More Posts
Share by: