Three Japanese banks, namely Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank, will start using a stablecoin on the Japan Open Chain. Firstly, they will begin this on an experimental basis and analyze its effects on the economy. After that, they will use the system for further experiments, which will be developed by GU Technologies. GU is a Web3 infrastructure organization that will run on the Japan Open Chain, a public blockchain fully compatible with Ethereum and compliant with Japanese law.
LayerX is currently operating the Japan Open Chain which is a Tokyo-based blockchain firm that provides blockchain infrastructure facilities to companies. Japan witnessed considerably high growth in blockchain technology after its parliament passed laws related to Stablecoin-specific rules.
The Japanese government is trying to expand its blockchain technology network in other countries too as it wants to list its Stablecoins in local exchanges.
For those who are not aware in Japan, it is illegal for cryptocurrency exchanges to list stablecoins that are produced outside of Japan, such as USDT. However, this restriction will supposedly be abolished in 2023 for stablecoins that adhere to certain regulatory requirements.
In Japan, privately developed Stablecoins are likely on their way to the east Asian nation. The Bank of Japan is shifting focus on its central bank digital currency, with a digital yen set for a pilot program in April. After the 2022 reforms, Japanese banks are now looking forward to shifting their focus to developing technology to make blockchain efficient and effective.