Japan Eyes Yen-Backed Stablecoins for Asian Settlements

Japan is exploring the use of yen-backed stablecoins for cross-border transactions in Asia, as part of its efforts to boost financial innovation. The proposal submitted by a ruling party panel recommends promoting the adoption of yen stablecoins for settlement purposes in the region.

The panel also suggested establishing a legal framework that would allow cryptocurrency exchange-traded funds (ETFs) to be traded on Japanese markets. This move is intended to increase investment opportunities and attract more international investors to Japan's financial sector.