Japan will launch its first yen-backed stablecoin on Monday, issued by the startup JPYC and fully convertible to the yen, supported by domestic savings and government bonds.

The move signals growing interest in digital currencies globally, with China and South Korea also exploring national stablecoins, while U.S. dollar-backed stablecoins currently dominate the market.

Japan’s megabanks are planning to issue their own stablecoins, which could help mainstream adoption in a traditionally cash-focused society where cashless payments have risen to 42.8% in 2024, Reuters has reported.

Experts caution that yen stablecoins may take years to gain traction, though participation by major banks could accelerate adoption.