By Leika Kihara<\/p>\n
TOKYO, June 1 (Reuters) – Japan must promote usage of yen-based stablecoins for settlement in Asia and create a legal framework to \u200callow trading of crypto exchange-traded funds (ETF), a ruling party panel said in \u200ca proposal to the government on Monday.<\/p>\n
“Crypto-ETFs would provide investors with easy-to-understand ways of investment,” the \u200bproposal said, calling on the government to position the product as an official means of investment in the financial market.<\/p>\n
The Liberal Democratic Party’s (LDP) panel on promotion of blockchain technology submitted the proposal to Finance Minister Satsuki Katayama, who also oversees Japan’s financial \u200cregulator, the Financial Services Agency (FSA).<\/p>\n
Japan \u2060can promote yen stablecoins and steps it is taking on blockchain innovation when it hosts the Asian Development Bank’s annual meeting \u2060in May next year, Junichi Kanda, a lawmaker in the panel, told reporters after meeting Katayama.<\/p>\n
“We urged the government to take steps to promote yen stablecoins for settlement \u200bin Asia \u200bin the future,” he said.<\/p>\n
A crypto ETF \u200bis a financial product that \u200callows investors to gain exposure to cryptocurrencies without directly owning or managing the underlying digital assets.<\/p>\n
The FSA has been promoting efforts by domestic financial institutions to use blockchain technology for innovation and streamlining of operations.<\/p>\n
Japan’s three largest banks have announced a project, backed by FSA, to experiment jointly issuing stablecoins. Domestic startup JPYC began \u200cissuing stablecoins pegged to the yen in October \u200bin a significant move in a country where \u200bmany consumers still prefer traditional \u200bpayment methods.<\/p>\n
Stablecoins pegged to the dollar have surged with strong \u200cbacking from U.S. President Donald Trump. Policymakers \u200bhave warned stablecoins \u200bcould facilitate the movement of funds outside regulated banking systems and undermine the role of commercial banks in global payment flows.<\/p>\n
Bank of Japan Deputy Governor \u200bRyozo Himino last month \u200ccalled for a “holistic approach” in designing the global future monetary system that \u200bdoes not confine options to central bank digital currencies and stablecoins.<\/p>\n
(Reporting \u200bby Leika Kihara; Editing by Alexandra Hudson)<\/p>\n","protected":false},"excerpt":{"rendered":"By Leika Kihara TOKYO, June 1 (Reuters) – Japan must promote usage of yen-based stablecoins for settlement in…\n","protected":false},"author":2,"featured_media":32993,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[72,1300,25097,3061,8,2240,33,426,7508],"class_list":["post-32992","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-asia","tag-bank-of-japan","tag-blockchain-technology","tag-fsa","tag-japan","tag-liberal-democratic-party","tag-nihon","tag-satsuki-katayama","tag-stablecoins"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/32992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=32992"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/32992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/32993"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=32992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=32992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=32992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}