Japan experts see stablecoins as future payment option alongside cash

Experts in Japan's finance and blockchain sectors have discussed the potential for stablecoins to become integral to daily life, though they agree that these digital assets will likely complement rather than replace traditional finance. During a panel discussion at an artificial intelligence and on-chain finance summit held on October 5, Hiroo Isowa of Sumitomo Mitsui Financial Group, Noritaka Okabe of JPYC, and Sota Watanabe of the Startale Group shared their insights. Watanabe and Okabe believed that living solely on stablecoins is possible, while Isowa was more cautious. Watanabe noted that physical payments will persist, but stablecoins will become another payment option. Okabe shared his experience living on JPYC for a week in 2022, suggesting that the current ecosystem is even more supportive of stablecoin usage.

The panelists also debated the role of stablecoins in international remittances. Isowa suggested that SWIFT and stablecoins could coexist, given the existing investment in banking networks. Okabe highlighted the competitive advantage of stablecoins for small remittances, while Watanabe focused on tokenized deposits as a long-term solution for international transfers. All three agreed that stablecoins could be used for tax payments, with Watanabe emphasizing the need for government disbursements to be converted on-chain and Isowa highlighting the benefits of programmability and simultaneous payment and record-keeping.

The discussion also touched on the need for yen-based stablecoins, with Okabe noting current liquidity challenges, while Isowa and Watanabe saw potential for such stablecoins in Japan-specific assets and funding currencies. The panelists agreed that stablecoins will spread across various areas, including everyday payments, small remittances, and corporate cash management, but will not entirely replace traditional finance. They emphasized the importance of institutional preparations and sufficient liquidity for the expansion of stablecoin use cases in Japan.