Mia Nagasaka, Head of Japan Financials Research at Morgan Stanley MEFG Securities, discusses Japan's emerging stablecoin market and its potential global impact. She explains that stablecoins, unlike volatile cryptocurrencies, maintain a stable value by being pegged to assets like the yen or US dollar. Japan's recent amendment to its payment service acts in June 2023 created a legal framework for stablecoins, positioning the country to potentially establish a major global digital currency. Nagasaka highlights that stablecoins can make payments faster, cheaper, and available 24/7, accelerating Japan's push for fintech and a digital economy. She also contrasts stablecoins with central bank digital currencies (CBDCs), noting that while CBDCs are legal tender issued by central banks, stablecoins are private sector innovations that can coexist with and drive innovation alongside public digital infrastructure.
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