The Japanese Parliament passed a bill to regulate stablecoins last week. According to Bloomberg, 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 already next year. 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 accelerate the legalization of stablecoins has been made by the Japanese authorities after the May crisis in the crypto market following the collapse of the Terra ecosystem.