Yen-Backed Stablecoin Launch Coincides with Anticipated BOJ Rate Hike
The launch of a blockchain-based Japanese yen is imminent, coinciding with anticipated interest rate hikes by the Bank of Japan (BOJ). Key highlights include:
- The BOJ is expected to raise interest rates in October or December, increasing the appeal of yen and yen-backed assets.
- Japan's Financial Services Agency may approve the country’s first yen-denominated stablecoin this fall, led by fintech firm JPYC, which plans to register as a money transfer business.
- Monex Group is also considering launching a JPY stablecoin for international remittances and corporate settlements.
- Yields on Japanese government bonds have reached multi-decade highs, with the 30-year yield surpassing 3.2% and the 10-year yield at 1.64%.
- The narrowing gap between U.S. and Japanese 10-year yields may lead to yen appreciation against the dollar.
- BTC/JPY has dropped 8% this month, indicating a bearish trend, with potential further declines predicted based on technical analysis.
