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Bank of Japan deputy governor Ryuzo Himeno said stablecoins could become a partial substitute for traditional bank deposits, signaling the central bank’s recognition of digital currencies’ growing role in the global financial system.
In an interview with Reuters published Tuesday, Himeno called stablecoins “essential for a fast and 24/7 functioning financial system” as major Japanese banks including MUFG, SMBC, and Mizuho prepare to issue yen-pegged tokens.
Himeino stressed that stablecoins offer clear advantages over traditional banking methods.
“Stablecoins enable faster transactions, lower fees, and 24-hour transfers, free from the limitations of legacy systems like SWIFT or ACH,” he said.
These features are proving to be effective and convenient for both businesses and consumers.
The deputy governor urged regulators around the world to update their policies in line with the rapid changes in the financial world. “It is essential to modernize prudential standards in line with emerging technologies,” said Himino.
He warned that central banks must recognize the growing influence of non-bank financial institutions and digital assets, otherwise the development of stablecoins could be hampered.
Japanese authorities are easing regulations to embrace digital innovation. In February 2025, the Financial Services Agency approved reforms to crypto regulations, including the issuance of stablecoins and crypto brokerage.
“These measures demonstrate Japan’s commitment to responsibly integrating stablecoins into the financial system, while ensuring consumer safety,” said Himeno.
Prior to the Bank of Japan’s statements, major Japanese banks were active in the development of stablecoins. MUFG, SMBC, and Mizuho planned to issue yen-pegged stablecoins and create a unified payment platform.
SMBC announced a trial of its stablecoin in partnership with Avalanche and Fireblocks in late 2025 or early 2026, while Monex Group expressed interest in launching a yen-backed stablecoin. “These measures reflect the growing confidence in stablecoins in Japan,” according to Himeno.
Fintech startup JPYC has launched Japan’s first official yen-pegged stablecoin. Fully backed by the local currency, the project is designed to enable secure and efficient digital payments.
“JPYC is a major milestone in the adoption of digital currencies in Japan, and stablecoins have the potential to reshape the global financial system,” said Himeno.
As more banks and fintech firms adopt digital currencies, Japan is emerging as a leader in responsibly integrating stablecoins into mainstream finance.
