1. QiAi QuestsHome
  2. Metaverse & Beyond

Japanese Banks to Test Stable Coins on Ethereum

• Metaverse & Beyond • 79 views

On March 2, according to local media reports, several well-known Japanese banks will test stable coins on the blockchain compatible with Ethereum and use new c…

Japanese Banks to Test Stable Coins on Ethereum

On March 2, according to local media reports, several well-known Japanese banks will test stable coins on the blockchain compatible with Ethereum and use new concepts to prove the issuance of stable coins in compliance with Japanese laws.

Several Japanese banks will test stable currency on “Japan Open Chain”

Interpretation of the news:


On March 2, 2021, local media reports revealed that several well-known Japanese banks are planning to test stable coins on the blockchain compatible with Ethereum. This development is a significant step towards integrating new concepts to prove the issuance of stable coins in compliance with the laws of Japan.

Stable coins are a type of cryptocurrency that aims to address the volatility issue of traditional cryptos like Bitcoin. They are pegged to a stable asset, often the US dollar, and provide a stable price for investors. This stability makes them ideal for use in the digital economy, especially in countries with high inflation rates.

The use of blockchain technology for stable coins guarantees transparency, security, and immutability during transactions. Ethereum, one of the most popular blockchain networks, is highly preferred by developers because of its smart contract functionality. Smart contracts make it possible to automate transactions and enforce regulations, which helps to minimize errors and fraud.

Many countries are yet to develop adequate regulations on stable coins, but Japan is taking the lead in this regard. The Japanese government regards digital currencies as a significant means of payment and has put in place regulations for cryptocurrency exchanges to protect investors. In 2019, the country introduced the Payment Services Act, which stipulated that issuers of stable coins must have enough capital to back up the coins.

The planned test of stable coins on Ethereum by Japanese banks signifies the growing acceptance of digital currencies by financial institutions. The move is also a testament to the potential of blockchain technology for financial innovation.

In conclusion, the rise of stable coins on blockchain networks is a win-win for investors and the digital economy. The use of blockchain technology guarantees security, transparency, and reduces the possibility of fraud. The planned test of stable coins on Ethereum by Japanese banks shows the potential for stable coins to comply with regulations, which is essential for their widespread adoption.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/4539.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/02/2023 07:33
Next 03/02/2023 08:04

Related recommendations