Tag Archives: digital

Japan Bets on Stablecoins and Crypto ETFs

Japan Bets on Stablecoins and Crypto ETFs

Japan has long been a leader in technological adoption, and now it is positioning itself at the forefront of digital asset regulation. On June 1, the Liberal Democratic Party submitted a bold proposal to Finance Minister Satsuki Katayama advocating for yen-backed stablecoins in Asian cross-border settlements and a clear legal framework for cryptocurrency exchange-traded funds. The initiative offers a compelling example for the rest of the world. While many governments continue to wrestle with digital assets, Tokyo is demonstrating how innovation can coexist with rigorous oversight. The global financial system could benefit from precisely this kind of decisive leadership.

The proposal is especially notable given Japan’s history with digital assets. The country was home to the infamous Mt. Gox collapse, a crisis that shattered confidence in cryptocurrency markets and erased billions in value. Rather than responding with blanket prohibitions, however, Tokyo chose a different path. Policymakers built one of the world’s most comprehensive regulatory frameworks, learning hard lessons while strengthening consumer protections. Today, Japan’s Financial Services Agency actively encourages financial institutions to explore blockchain technology for greater operational efficiency.

The nation’s three largest banks already participate in stablecoin initiatives and issue their own digital assets. This transformation from cautionary tale to regulatory leader illustrates an important lesson: thoughtful regulation can foster long-term growth. Lawmaker Junichi Kanda and his colleagues appear eager to showcase these achievements at the Asian Development Bank meeting in 2027 as a model for other countries.

Dollar-backed tokens currently dominate the global stablecoin market, accounting for the overwhelming majority of the hundreds of billions of dollars circulating across major blockchain networks. Japanese policymakers recognize both the concentration risk and the geopolitical implications of relying heavily on foreign digital currencies. Their goal is to establish a credible regional alternative centered on the yen.

Stablecoins effectively transform traditional currencies into programmable software, enabling settlement that is continuous, transparent, and potentially borderless. By promoting yen-backed tokens for Asian cross-border payments, Japan strengthens its monetary sovereignty while keeping more capital within its sphere of influence. Europe has adopted a similar strategy to support the euro. One recent euro stablecoin initiative brought together 25 major banks in an effort to challenge American dominance. Tokyo is applying the same instinct to Asia. In doing so, it seeks to transform the yen from a conventional fiat currency into a critical layer of digital infrastructure for the region.

The inefficiencies of the current international banking system make this vision particularly attractive. Traditional cross-border transfers often take several days to settle and generate substantial fees through intermediary banks. Yen-backed stablecoins could eliminate many of these middlemen and reduce settlement times to mere seconds. A company in Tokyo could pay a supplier in Singapore almost instantly using programmable yen tokens, bypassing much of the correspondent banking system altogether. Such efficiency would reduce friction in international commerce and encourage deeper economic integration throughout Asia.

The Asian Development Bank recognizes this potential, which is one reason Japan intends to highlight these developments at upcoming regional forums. By modernizing payment rails, Japan hopes to ensure that the yen remains competitive against both the digital dollar and the emerging digital yuan.

Beyond stablecoins, the ruling party is also pushing for clear legislation governing cryptocurrency exchange-traded funds. These products offer traditional investors a familiar vehicle for gaining exposure to digital assets without navigating the complexities of wallets, private keys, and self-custody. They remove many of the technical barriers that have historically discouraged participation. In the United States, spot Bitcoin ETFs attracted tens of billions of dollars in assets under management shortly after receiving regulatory approval in 2024. Japan hopes to capture similar institutional momentum while keeping domestic capital within its own markets.

SoftBank occupies a central role in this evolving landscape. The conglomerate controls critical consumer payment infrastructure through PayPay, the mobile payments platform with more than 70 million active users. PayPay recently acquired a 40 percent stake in Binance Japan, creating opportunities to connect everyday commerce with digital assets. The arrangement could allow users to purchase cryptocurrencies and move proceeds through familiar payment applications. SoftBank does not necessarily need to issue digital tokens itself. Its advantage lies in controlling the infrastructure and shaping the user experience through which these services are delivered.

Masayoshi Son’s broader technology strategy further complements this vision. SoftBank is investing heavily in artificial intelligence infrastructure, including plans to develop five gigawatts of AI data center capacity in France through investments that could reach €75 billion. Over time, programmable money and increasingly automated financial systems will depend on precisely this kind of computing power.

Platforms responsible for routing transactions, pricing risk, and executing smart contracts require high-performance networks and near-instant digital payment systems. Son appears to be positioning SoftBank at the foundation of a future in which finance and technology become deeply intertwined. His willingness to take on significant debt reflects a belief that controlling the infrastructure layer of tomorrow’s economy will be more valuable than simply participating in it.

The international community is watching these developments closely because the cryptocurrency industry still seeks the mainstream legitimacy necessary to achieve broader adoption. For much of its history, digital assets have been associated with volatility, speculation, and fraud. Robust regulatory frameworks help change that perception. When a major economy such as Japan formally embraces these technologies, it reduces stigma and opens the door to significant pools of traditional capital.

Pension funds, endowments, and sovereign wealth funds may hesitate to hold unregulated tokens directly, but many are far more comfortable purchasing regulated exchange-traded funds or utilizing government-approved stablecoins.

An influx of institutional capital could help stabilize markets and accelerate innovation. Developers gain confidence when they can build on regulatory foundations that appear durable and predictable. As participation expands, the industry may become more mature, liquid, and resilient. In that sense, mainstream acceptance serves as a bridge between the world of cryptocurrency enthusiasts and the broader global financial system, creating a unified marketplace capable of operating at much greater scale.

This comprehensive strategy offers significant benefits. Clear legal frameworks encourage institutional participation, deepen liquidity, and create safer pathways for retail investors. Cross-border payments become faster, cheaper, and more transparent.

At the same time, the risks should not be ignored. Stablecoins introduce elements of centralization, as private issuers control reserve assets and often retain the ability to freeze wallets. Exchange-traded funds require investors to trust third-party custodians, a reality that runs counter to the decentralized ideals that originally defined the cryptocurrency movement. Regulators must remain vigilant, enforcing strict audit requirements and ensuring complete transparency regarding reserve holdings.

Even so, Japan appears to be navigating these trade-offs with unusual care. Policymakers are attempting to balance consumer protection with technological innovation and economic competitiveness. The broader world would be wise to pay attention.

Tokyo is demonstrating that countries can embrace digital finance without sacrificing financial stability or surrendering control over monetary policy. Whether or not every element succeeds, Japan is building a framework that many governments are likely to study closely. As nations increasingly recognize the strategic importance of digital currency infrastructure, aspects of Tokyo’s approach may well become a blueprint for the next era of global finance.

 

Source: https://intpolicydigest.org/japan-bets-on-stablecoins-and-crypto-etfs/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

China to let banks pay interest on digital yuan wallets from January 2026

China to let banks pay interest on digital yuan wallets from January 2026

China’s central bank is rolling out a new framework for the digital yuan that will allow commercial banks to pay interest on e-CNY wallet balances starting Jan. 1, 2026, a move officials say will push the central bank digital currency (CBDC) beyond its original role as a cash substitute.

The new CBDC framework will allow banks to treat the digital yuan as part of their asset-liability operations, Lu Lei, a deputy governor of the People’s Bank of China, wrote in a PBOC-affiliated China Financial Times article published on Monday.

“The digital RMB will move from the digital cash era to the digital deposit currency (Digital Deposit Money) era,” said Lei in the report. “It has the functions of monetary value scale, value storage, and cross-border payment.”

While cryptocurrency transactions and stablecoins are banned in Mainland China, the PBOC continues developing its CBDC framework, seeking to utilize the efficiency of blockchain rails through a central-bank-issued digital cash alternative.

This is in contrast to the stablecoin-friendly US regime, where President Donald Trump issued an executive order banning the creation of a CBDC, citing concerns over their potential to threaten financial system stability, individual privacy and national sovereignty.

The executive order, signed on Jan. 23, prohibits the establishment, issuance, circulation or use of CBDCs, a development described as a “game-changer” for the growth of the US crypto industry, Anndy Lian, an author and intergovernmental blockchain adviser, previously told Cointelegraph.

In July, Trump signed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, the US’s first comprehensive stablecoin framework, which established clear rules for stablecoin collateralization and mandated compliance with Anti-Money Laundering laws.

China’s “Action Plan” to accelerate e-CNY adoption

China’s new framework, the “Action Plan on Further Strengthening the Digital RMB Management Service System and Related Financial Infrastructure Construction,” seeks to expand the national use of the e-CNY and build the necessary infrastructure.

In September, the central bank established the RMB International Operations Center in Shanghai, a blockchain services platform seeking to build onchain settlement tools and crosschain transfer capabilities to promote the use of the digital yuan in cross-border settlement.

While the PBOC said that the digital yuan could create more financial inclusion, some critics are concerned about its ability to give more financial control to the central bank.

“The Chinese government wants more control over payments,” according to Alex Gladstein, chief strategy officer at non-profit organization the Human Rights Foundation.

While the central bank already holds a “firm grip” on the two leading commercial payment giants, direct control and oversight over a digital currency would provide more data and “power to deny people access,” Gladstein told MIT Technology Review in August 2023.

 

Source: https://cointelegraph.com/news/china-digital-yuan-interest-wallets-2026

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Europe’s Digital Euro: A Surveillance Coin in Disguise

Europe’s Digital Euro: A Surveillance Coin in Disguise

As the European Central Bank (ECB) pushes forward with plans to launch a retail Central Bank Digital Currency (CBDC) by 2029, pending legislative approval in 2026 and pilot testing from mid-2027, it’s tempting to view this as a neutral evolution of money in a digital age. But beneath the glossy language of “secure payments” and “complementing cash” lies a stark reality. This is not about innovation. It’s about control. And it stands in sharp contrast to the more pragmatic, market-driven approaches emerging elsewhere, most notably in the United Arab Emirates.

Let’s dispense with euphemisms. In my opinion, the ECB’s so-called “digital euro” is not a tool for financial inclusion or technological progress. With a €1.3 billion budget, no use of blockchain, no privacy safeguards, and no mechanism for redemption into physical cash or other assets, it functions less like money and more like a programmable surveillance instrument. Unlike cash, which is anonymous, final, and free from intermediation, the digital euro will be fully traceable, subject to usage conditions such as spending caps or expiry dates, and entirely under the thumb of central authorities. That’s not monetary policy. That’s digital authoritarianism wrapped in technocratic jargon.

The ECB insists the digital euro will “complement” cash, not replace it. But actions speak louder than reassurances. Why pour billions into a parallel currency if cash isn’t the target? Why design a system where every transaction is logged, monitored, and potentially restricted unless the goal is to shift economic behavior through oversight? In a continent already grappling with rising energy costs, inflation, and bureaucratic overreach, the last thing citizens need is a state-mandated payment layer that watches, judges, and possibly penalizes their spending.

Compare this to the UAE, a jurisdiction often dismissed as a “small player” but one that is rapidly becoming a blueprint for 21st-century financial infrastructure. The UAE isn’t pushing a retail CBDC on its citizens. Instead, it operates a layered, purpose-built stack: a wholesale-only Digital Dirham for cross-border interbank settlements, already live with India, China, and Saudi Arabia; regulated deposit tokens issued by banks for trade finance; and a thriving, regulated stablecoin ecosystem for retail and corporate payments. Circle, Paxos, and Tether are all operating under the Central Bank of the UAE (CBUAE), offering programmable, exportable, and transparent digital dollars. No coercion. No surveillance by design. Just clear roles, clear rules, and market choice.

This is the critical distinction. The UAE understands that money thrives on trust, but trust is earned through transparency, competition, and user sovereignty, not top-down mandates. Stablecoins, despite their critics, have already demonstrated this at scale. A $307 billion market cap and Tether’s projected $10 billion profit in 2025 are not flukes. They reflect real demand for digital money that is fast, open, and not tethered to government discretion. The U.S., for all its regulatory ambiguity, has largely embraced this reality, allowing innovation to flourish while slowly building guardrails.

Europe, by contrast, is doubling down on control. The digital euro debate is mired in technicalities about wallet limits and transaction expiration, not user experience, not interoperability, not financial resilience. It’s as if the ECB learned nothing from the crypto winters or the global shift toward decentralized finance. Instead of fostering a competitive landscape where stablecoins, commercial bank money, and cash coexist, Europe wants a monolithic, state-run alternative that centralizes power under the guise of “security.”

Make no mistake. CBDCs have a legitimate role, but only in the plumbing of finance. Wholesale CBDCs can streamline interbank settlements, reduce settlement risk, and enhance cross-border liquidity. That’s infrastructure. But injecting a retail CBDC directly into public wallets is a different beast entirely. It turns money into a policy lever, one that can be throttled, redirected, or disabled based on political whims or social engineering goals. Once deployed, such a system will be nearly impossible to roll back.

And for what? The ECB claims the digital euro will “build trust.” But trust in money doesn’t come from central control. It comes from reliability, scarcity, and freedom of use. Cash offers that. Gold offers that. Even well-regulated stablecoins offer that. A digital euro, designed without privacy, without redemption rights, and without decentralization, offers none of it.

The irony is palpable. At a time when citizens worldwide are reevaluating their relationship with institutions, the ECB is engineering a currency that embodies institutional overreach. Meanwhile, jurisdictions like the UAE are building open, modular, and exportable financial rails that empower businesses and individuals alike. One path leads to innovation and sovereignty. The other to surveillance and stagnation.

I’ve spent over a decade observing the evolution of digital assets, from Bitcoin’s cypherpunk roots to the institutionalization of DeFi and the rise of regulated stablecoins. What’s clear is this. The future of money belongs to systems that enhance user agency, not restrict it. Europe’s digital euro, as currently conceived, does the opposite. It’s not a response to market demand. It’s a preemptive strike against financial pluralism.

So, if you’re in Europe and value privacy, autonomy, or simply the right to transact without Big Brother’s ledger tracking your lunch purchase, think twice. The ECB may call it “progress.” But history will likely remember it as the moment Europe chose control over freedom, surveillance over trust, and bureaucracy over innovation.

And I, for one, wouldn’t want to be forced to use it.

Short bio:

Anndy Lian is an all-rounded business strategist in Asia. He has provided advisory across a variety of industries for local, international, and public-listed companies and governments. He is an early blockchain adopter and experienced serial entrepreneur, book author, investor, board member, and keynote speaker.

 

Source: https://852web3.media/2025/11/18/europes-digital-euro-a-surveillance-coin-in-disguise-2/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j