While the US GENIUS Act is being celebrated as a market catalyst for stablecoin adoption, Japan’s earlier reforms show the flip side: Clarity doesn’t automatically translate into immediate real-world utility.
Japan had the world’s first comprehensive stablecoin regime in 2023, but adoption has been muted. Licensed issuers exist on paper, yet there’s no thriving yen-stablecoin economy.
In an interview with Cointelegraph, Takashi Tezuka, country manager at Web3 infrastructure developer Startale Group, said the adoption gap between the US and Japan reflects a philosophical difference in regulatory design.
“The GENIUS Act was greeted with a mix of relief and curiosity,” Tezuka said, “because the US has finally caught up with what Japan did two years earlier — putting a comprehensive legal framework around stablecoins.”
Under Japan’s 2023 amendment to the Payment Services Act, only licensed banks, trust banks and registered money transfer agents are permitted to issue stablecoins.
The US approach under the GENIUS Act, by contrast, opens the door more widely: Not only banks, but also federally licensed non-bank companies can pursue stablecoin issuance, provided they meet reserve and compliance standards.
This underscores a philosophical divide. “Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market-opening play,” Tezuka noted.
Still, the gap may not last long. Japan’s infrastructure-first strategy “mirrors broader industry signals — global players are building infrastructure to support programmable, enterprise-grade capital markets, and Japan’s measured, infrastructure-first mindset positions the country to compete as the regulatory landscape matures.”
Related: Japan’s finance minister endorses crypto as portfolio diversifier
First yen-backed stablecoin set to launch this year
After laying the regulatory groundwork for the past two years, Japan is set to approve its first yen-den stablecoin this fall, opening the door to blockchain-based remittances and payments of its national currency.
The first stablecoin will reportedly be issued by local fintech company JPYC, which is registering as a money transfer operator. It will be a fully collateralized stablecoin, backed one-to-one with bank deposits and Japanese government bonds.
Tokyo-based Monex Group is also considering issuing its own yen-pegged stablecoin. Like JPYC’s,…
Click Here to Read the Full Original Article at Cointelegraph.com News…