Company #Circle and Bank SBI Holdings will introduce stablecoin #USDC in Japan
Japanese financial conglomerate SBI has entered into a partnership agreement with Circle to promote the USDC stablecoin. The agreement is made in accordance with the revised Payment Services Act, which regulates the issuance and circulation of stablecoins in Japan. According to the bill passed on June 3, stable digital coins are considered digital money. They must be backed by Japanese yen or other government currency at a ratio of 1:1. Circle insists: USDC stablecoins are fully backed by one-to-one US dollar and cash equivalents. Reserves are held separately from Circle's operating funds at major financial institutions. As of November 17, 2023, more than $12.7 trillion has already been transacted with USDC. SBI Group and Circle are committed to complying with Japanese laws and cooperating with local authorities. In order to conduct transactions using USDC in Japan, SBI is going through the process of registering as an electronic payment service. Tokyo-headquartered SBI Shinsei Bank also intends to provide banking services to Circle. In addition, SBI Group will implement Circle Web3 Services solutions including programmable wallet, blockchain infrastructure and smart contract management tools. In June, Japan's National Tax Agency revised its cryptocurrency taxation law and allowed token issuers to avoid paying a 30% tax on unrealized profits.
