Japan is continuing its push into Web3, with three major banks in the country preparing to pilot their stablecoins on a public blockchain.
According to a press release on Thursday, Tokyo Kiraboshi Financial Group, Minna no Bank and Shikoku Bank will issue their own stablecoins via the Japan Open Chain, a public blockchain "fully compatible with Ethereum that complies with Japanese law" developed by Web3 infrastructure company GU Technologies.
The test will initially focus on the issuance and remittance of "electronic money," with future plans for a stablecoin system involving local governments and private companies.
According to GU Technologies, Japan Open Chain is PoA (Proof-of-Authority) blockchain that will be able to handle up to 1,000 TPS (transactions per second). The network was developed in collaboration with Dentsu, Minna Bank, Pixiv, the Kyoto University of the Arts, and Corgear.
Since Prime Minister Fumio Kishida’s appointment last year, Japan has been trying to drive Web3 adoption. The country recently established a Web3 policy office under the Ministry of Economy, Trade, and Industry (METI).
Earlier this year, Japan's Financial Services Agency (FSA) announced that it will allow stablecoin trading by June 2023.
The move overturns Japan's stablecoin ban that was introduced in June 2022 following the LUNA crash. Under the old bill, foreign stablecoins were required to be linked only to the Japanese yen or another legal tender, which meant that local exchanges could not issue stablecoins like USDT and USDC.
In October, the Japan Virtual and Crypto Assets Exchange Association, the governing body that deals with crypto assets in Japan, announced its plans to further ease crypto laws in the country.
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