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Sujit Kumar
Mar 2, 2023
by Sujit Kumar

Banks To Test StableCoins On The 'Japan Open Chain'

Japan Open Chain

Table of contents

  1. Japan Open Chain: What Is It?
  2. Japan relaxes stablecoin laws
A stablecoin test with Japanese banks will make use of the "Japan Open Chain." Private businesses and local governments will also be involved in the test. Several prominent banks have tested the use of stablecoins on blockchains that are compatible with Ethereum. Domestic banks will use a new proof of concept to issue stablecoins in accordance with Japanese law.

Future plans will focus on a stablecoin system that complies with legal requirements, with the initial focus of the test being on the issuance and transfer of electronic money. Private businesses and local governments will be involved in the latter. Instead of making use of stablecoins that are already available on the market, these banks will create their own. The stablecoins will work with popular wallets like MetaMask.  Japan's regulatory authorities will lift the restriction on  stablecoins.

Japan Open Chain: What Is It?

An Ethereum-compatible blockchain developed by GU Technologies in collaboration with Dentsu, Minna Bank, Pixiv, the Kyoto University of the Arts, and CORGEAR is called Japan Open Chain.

Japan relaxes stablecoin laws

Regulatory authorities in the country prohibit crypto exchanges from listing stablecoins like USDT. With the change, exchanges can handle stablecoin trading under “the condition of asset preservation by deposits and upper limit of remittance.”

The Bank of Japan is focusing on its CBDC. Japan has increasingly turned its attention to this digital asset since development. The pilot will focus on the technical feasibility of a digital yet and involve private companies.

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Banks To Test StableCoins On The 'Japan Open Chain'
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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