The Japanese Parliament has passed a bill to regulate stablecoins.
The country's authorities want to recognize fiat-backed digital currencies as electronic money. Each token must be backed by the yen or other national currency. Thus, the holder of a stablecoin will be able to convert this instrument into cash at any time, the bill says.
The document should enter into force in 2023. Only licensed banks will be able to issue stablecoins. Trust companies and registered payment system operators will have the same right. At the same time, the bill does not apply to digital currencies issued by foreign issuers.
The decision to speed up the legalization of stablecoins was made by the Japanese authorities after the May crisis in the crypto market.
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The collapse of the Terra ecosystem not only triggered the fall of Bitcoin but also led to the fact that Tether (USDT) lost its peg to the dollar. As a result, investors began to massively withdraw capital from this asset.
The introduction of the regulatory framework will help maintain stability and ensure the protection of companies and citizens who have invested in fiat-backed digital currencies, supporters of the law say.
In parallel, Japan is preparing to create a digital yen. According to Reuters, by the end of 2022, the country's Central Bank will present its CBDC concept.