Japan adopted a legal framework for stablecoins in June 2022, which came into effect on Thursday. Stablecoins are legally required to be pegged to the Japanese yen or another fiat currency and guaranteed to be redeemed to the holder at face value. It also limits the issuance of stablecoins to licensed financial institutions such as registered banks, remittance agents and trust companies.
It will benefit everyone in the long run, but Japan’s initiative is the first step towards frictionless, free remittances internationally.
