Japan's parliament has just passed a bill that recognizes stablecoins as digital money, FT has reported.
According to the law, which will come into force in the summer of 2023, "stablecoins" must be pegged to the yen or other legal tender and guarantee owners the right to redeem them at face value.
This means only authorized banks, money transfer providers and fiat companies can issue such assets.
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Japan's Financial Services Agency, the country's regulator, has promised to develop rules for stablecoin issuers.
Currently, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Trust are preparing stablecoin projects that meet future regulatory requirements.