Episode Overview

Podcast: Thoughts on the Market
Episode: Special Encore: How Japan’s Stablecoin Could Reshape Global Finance
Date: November 28, 2025

Main Theme:
This episode features Miya Nagasaka, head of Japan Financials Research at Morgan Stanley MUFG Securities, discussing the imminent launch of Japan’s first yen-denominated stablecoin and its potential to redefine digital payments, both domestically and globally. The conversation explores why stablecoins matter, Japan’s unique regulatory approach, and the broader implications for global finance and central bank digital currencies.

Key Discussion Points & Insights

1. Japan’s Entry Into the Stablecoin Market ([00:29])

• While later to the crypto market than some, Japan’s forthcoming yen-denominated stablecoin could have far-reaching effects on digital money movement.

• Quote [00:29]:
  "Japan may be late to the crypto market, but its first yen denominated stablecoin is just around the corner, and it has the potential to quietly reshape how digital money moves across the country and globally." — Miya Nagasaka

• Stablecoins differ from volatile cryptocurrencies like Bitcoin by being pegged to stable assets (yen, US dollar, etc.).

2. Japan’s Regulatory Framework ([01:02])

• In June 2023, Japan reformed its Payment Service Acts to provide a legal framework for stablecoins.

• New regulations require that stablecoins be:

  • 100% backed by high-quality liquid assets (not algorithmic)
  • Issued by licensed entities with transparency and monthly audits
  • Prohibited from being algorithmic in design (mirroring similar global rules in the US, EU, and Hong Kong)

• Quote [01:21]:
  "Stablecoins promise to make payments faster, cheaper and available 24/7." — Miya Nagasaka

3. Digital Economy Momentum ([01:21]-[01:53])

• Cashless payments in Japan are rising (30% in 2020 to 43% in 2024), but adoption lags behind some countries, leaving potential for growth.
• Government and fintech industry are driving digital payment adoption.
• Stablecoins seen as the “missing link” to a truly digital economy, combining reliability of cash with Internet speed.

4. Industry Applications and Opportunities ([01:53]-[02:53])

• Financial institutions are exploring stablecoins for:

  • Instant settlement of stock and bond trades (moving from days to seconds)
  • Asset management and lending innovations
  • Web3 integration and “banking as a service”

• Regulatory compliance and Japan’s low interest rate environment pose profitability challenges.

• Quote [02:56]:
  "These transactions could happen in seconds with stablecoins..."

5. Impact on Cross-Border Payments ([02:53]-[03:21])

• Stablecoins can supplement, but not replace, SWIFT in global transactions—potentially cutting fees by up to 80% and completing payments in seconds.

• Critical role of trust in issuers and anti-money laundering compliance.

• Quote [03:10]:
  "Stablecoins will not replace Swift, but they can supplement it. Payment that used to take days can now be completed in seconds with up to 80% lower fees."

6. The Role of CBDCs ([03:21]-[04:00])

• Comparison between stablecoins and central bank digital currencies (CBDCs):

  • Stablecoins: private, not legal tender, drive innovation
  • CBDCs: government-issued, legal tender, act as infrastructure

• Japan is preparing for a CBDC but proceeds cautiously.

• Future may see stablecoins and CBDCs “coexisting”—each serving distinct roles in digital finance.

• Quote [03:48]:
  "If and when that happens, stablecoins and CBDCs can coexist with the digital currency serving as public infrastructure and stablecoins driving innovation."

7. The Bottom Line ([04:00]-[04:15])

• Japan’s stablecoin initiative could impact payments, asset management, and global finance well beyond its borders.
• The “stablecoin journey is just beginning,” but its ripples are already evident.

Notable Quotes & Memorable Moments

• Miya Nagasaka [00:29]:
  "Japan may be late to the crypto market, but its first yen denominated stablecoin is just around the corner, and it has the potential to quietly reshape how digital money moves across the country and globally."
• [01:21]:
  "Stablecoins promise to make payments faster, cheaper and available 24/7."
• [02:56]:
  "These transactions could happen in seconds with stablecoins..."
• [03:10]:
  "Payments that used to take days can now be completed in seconds with up to 80% lower fees."
• [03:48]:
  "If and when that happens, stablecoins and CBDCs can coexist with the digital currency serving as public infrastructure and stablecoins driving innovation."

Key Segment Timestamps

• [00:29] Introduction to Japan’s entry into stablecoins
• [01:02] Regulatory framework and reforms
• [01:21]-[01:53] Cashless payment adoption and role of stablecoins
• [01:53]-[02:53] Industry applications and innovations
• [02:53]-[03:21] Cross-border payments and the role of SWIFT
• [03:21]-[04:00] Stablecoins vs. CBDCs and Japan’s cautious approach
• [04:00]-[04:15] Overall impact and summary

Summary

Miya Nagasaka details how Japan’s upcoming yen-based stablecoin—supported by robust regulatory standards—could transform not only the Japanese payment and financial landscape but also have a ripple effect on global finance. The blend of strict oversight, mounting digital adoption, and the coexistence of private and public digital currencies makes Japan’s approach one to watch for investors and policymakers alike.