Japanese startup JPYC has launched the world’s first stablecoin pegged to the yen, Reuters reports.
The stablecoin is also called JPYC and can be fully converted into yen. It is backed by internal cash reserves and Japanese government bonds.
The company intends to issue JPYC worth 10 trillion yen ($66 billion) over three years and ensure widespread use of this cryptocurrency abroad.
To stimulate its circulation, JPYC does not plan to charge transaction fees at the initial stage. It will generate income from interest payments on government bonds.
“We hope to stimulate innovation by enabling startups to pay low fees for transactions and settlements,” Chief Executive Officer Noritaka Okabe told reporters.
Blockchain-based stablecoins are usually pegged to fiat currencies, allowing for faster and cheaper payments.
More than 99% of stablecoins in the world are pegged to the US dollar, according to the Bank for International Settlements (BIS).
Nikkei reported in October that Japan’s three largest banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group — would jointly issue their own stablecoins.
In September, nine European banks, including UniCredit and Raiffeisen, announced similar plans.
