This podcast episode, an encore release, focuses on Japan's stablecoin revolution and its potential global impact. Mia Nagasaka, Head of Japan Financials Research at Morgan Stanley MEFG Securities, explains that Japan's first yen-denominated stablecoin is imminent, following a legal framework established in June 2023. She highlights that stablecoins, unlike volatile cryptocurrencies like Bitcoin, are pegged to stable assets, offering faster, cheaper, and 24/7 payments. Japan's strict regulatory approach requires stablecoins to be 100% backed by high-quality, liquid assets, prohibiting algorithmic stablecoins. The episode discusses how stablecoins could transform financial transactions, such as real-time settlement of stock and bond trades, and supplement international payment systems like SWIFT, while also differentiating them from Central Bank Digital Currencies (CBDCs).
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