CBDC

In mid-2023, the FSA introduced a new regime for a Japanese version of Stable Coins, which must be fully backed up by legal tender. The regime, however, has been put on hold until banks establish sufficiently robust risk control and customer protection measures. Meanwhile, the BOJ launched the “CBDC Forum” in summer 2023 to review multiple aspects of CBDC with various financial service providers. The BOJ says there is no imminent need or concrete plan to issue CBDC in Japan, but they are preparing for the future. We monitor further developments.