USDC issuer Circle is mulling the idea of issuing a stablecoin in Japan citing the recently enacted legislation which governs such tokens in the region.
Circle Push for Cross-Border Stablecoins Use
During an interview, Circle’s Chief Executive Officer (CEO) and co-founder Jeremy Allaire told CoinDesk Japan that the country could potentially become a significantly huge market if it permits the wide usage of stablecoins for cross-border settlements, foreign currency transactions, and global commerce.
As a result of this possibility, Circle CEO is interested in partnering with Japan on stablecoin issuance. He has been trying to encourage such legislation for stablecoin in the United States while highlighting the rise of digital currencies, the evolving geopolitical landscape, and the need for effective policy measures.
Japan Stablecoin Rule Takes Effect
Allaire’s bullish statement comes as Japan’s rule for stablecoin took effect on June 1st. Markedly, Japan has joined the list of the few countries that have laid out regulations for stablecoins. However, the country passed a bill for stablecoin in June 2022 to enshrine investors’ protection with respect to unforeseen eventualities with the instability in stablecoins.
According to the draft bill, the stablecoin is required to be pegged to the Japanese Yen or other tangible assets as investors and other holders will redeem the coin at face value. Plus, they can only be issued by licensed banks, registered money transfer agents, and trust companies.
Beyond Japan, U.S And UK Works on Stablecoin Legislation
Some other nations are still working on their stablecoin regulatory framework. The members of the United States House Financial Services Committee introduced a drafted bill for regulating stablecoins in April with the sole aim of designing a robust and comprehensive regulatory framework for stablecoins like the U.S. dollar-pegged USDC, Tether (USDT), and others.
The United Kingdom has been in this race for quite some time now and had previously put the U.K. Treasury alongside the Bank of England (BoE), the Payment Systems Regulator (PSR), and the Financial Conduct Authority (FCA) in charge of the project. However, Nadhim Zahawi, the chancellor at the time, laid out the government’s ambitions to regulate stablecoins as part of a new Financial Services and Market Bill (FSMB).