Ryozo Himino, Deputy Governor of the Bank of Japan (BOJ), has emphasized the growing importance of stablecoins in shaping the future of global finance. Speaking on October 21 at the 2025 GZERO Summit Japan, Himino said that stablecoins could become a key pillar of the international payment system and may one day partially replace traditional bank deposits.
Stablecoins Could Redefine the Global Payment Landscape
In an interview with Reuters, Himino highlighted that the financial world is rapidly changing, and regulators must adapt to “new realities.” He noted that stablecoins, unlike traditional bank deposits, offer advantages such as instant settlement, lower transaction costs, and 24/7 availability features that legacy banking systems like SWIFT or ACH still struggle to match.
“Stablecoins could play an important role within the global payment system,” Himino said, adding that financial regulators worldwide must learn to adapt to these evolving mechanisms rather than resist them.
Himino’s comments mark a notable shift in tone from traditional central bank conservatism, signaling a growing openness toward digital financial innovation in Japan’s top regulatory circles.
Japan’s Banking Giants Lead the Stablecoin Push
Even before the BOJ’s public endorsement, Japan’s major financial institutions have been actively exploring stablecoin development.
Earlier this month, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group three of Japan’s largest banks announced plans to launch a yen-pegged stablecoin and build a unified payment platform to simplify digital settlements.
The initiative will be powered by MUFG’s blockchain infrastructure, Progmat, which will handle stablecoin issuance and governance. The goal is to enable faster, cheaper cross-border payments for businesses while maintaining compliance with Japan’s financial laws.
SMBC has also unveiled plans to issue a stablecoin supported by blockchain networks Avalanche and Fireblocks, with pilot testing expected in late 2025 or early 2026.
Meanwhile, Monex Group, another major financial firm, has expressed interest in creating its own yen-pegged stablecoin backed by Japanese government bonds, though development remains in early stages.
Japan’s Financial Services Agency (FSA) has already approved the first official yen-backed stablecoin, JPYC, issued by fintech startup JPYC Inc., making it the first regulated stablecoin tied to the Japanese yen.
Regulatory Evolution: From Resistance to Acceptance
During his address, Himino also urged G20 nations to move forward with implementing the long-delayed Basel III banking standards, which include updated rules for crypto and banking risk management. He criticized governments for repeatedly delaying these reforms, saying:
“Regulators are doing a lot in these spheres, but much more needs to be done. We need to continue to modernize international prudential standards to keep up with new and emerging realities.”
Japan’s regulators have been signaling a progressive stance toward digital assets. Earlier this year, the FSA approved a report proposing eased rules for stablecoin issuance and crypto brokerage operations, aiming to encourage innovation while maintaining oversight.
Bottom Line
The Bank of Japan’s evolving view on stablecoins represents a turning point in global monetary policy. As the country’s largest banks prepare to issue yen-pegged digital currencies, Japan appears poised to bridge the gap between traditional finance and the digital economy.
With stablecoins offering speed, transparency, and global reach, Japan’s shift could inspire other nations to reimagine how central banks, commercial banks, and blockchain technology coexist in the modern financial ecosystem.
Disclosure: This article is for informational purposes only and does not constitute investment or legal advice.
