Amid the regulatory chaos in the U.S., several companies from the crypto industry have already started looking into Asia to expand their reigns. Several regions including the UAE, Singapore, Hong Kong, are among the top contenders at the moment. Japan, another Asian country, is now being considered as another alternative.
In a recent interview with CoinDesk Japan, Circle Co-Founder and CEO, Jeremy Allaire, asserted that the demand for digital dollars in “many markets,” especially in emerging ones like Southeast Asia, is on the rise. Businesses seek stability in the dollar, as well as the convenience of making online transactions easier, he noted.
Allaire went on to reveal that his company is looking to issue a stablecoin in Japan. After underlining that USDC is used in over 190 countries, he stressed that Circle intends to “grow in large markets” around the world. With respect to Japan, he added,
“Japan has a long history of cross-border trade, foreign currency transactions, and global commerce. If stablecoins become more widely used for such purposes, we believe that Japan will become an extremely large market.“
Japan could be a ‘very attractive’ Market for Circle: Jeremy Allaire
Japan is one of the few countries where there are specific rules pertaining to stablecoins, which have been given the status of digital money. Moreover, the latest regulations provide an “excellent framework for governments and stablecoin issuers,” Allaire said. The executive hoped that Japanese companies, financial intermediaries, digital asset exchanges, and fintech companies will use USDC. At the moment, the company is looking into the new rules. In fact, it is parallelly examining how USDC can be used in the Japanese market.
Japan’s revised Fund Settlement Act has opened the doors for banks, trust banks, and fund transfer companies to issue stablecoins. As reported recently, Japan’s largest bank, Mitsubishi UFJ Financial Group [MUFG], is in talks with companies associated with prominent global stablecoins. Alongside, it is also discussing with the firms about issuing such tokens via its own blockchain platform, Progmat. According to the Vice President of Products, Tatsuya Saito, Japan could end up becoming a global hub for stablecoin issuance. When asked if Circle is considering issuance in Japan, Allaire said,
“I am considering it very carefully. I think Japan could be a very attractive market for Circle.”
Clarifying if the stablecoin issued in Japan will be linked to the yen or dollar, Circle’s executive said that the company is “investigating demand.” He added, “Yen-linked stablecoins will be a new opportunity.”