Circle’s CEO, Jeremy Allaire, has expressed interest in issuing the company’s USD Coin (USDC) stablecoin in Japan following the implementation of the country’s revised Payment Services Act.
This act allows for the issuance of stablecoins as electronic payment methods, opening up new opportunities for companies like Circle to expand their reach into the Japanese market.
Circle Sets Sights On Japan
Allaire stated that Japan could become an extremely large market for USDC, citing the country’s long history of cross-border trade, foreign currency transactions, and global commerce.
The Circle CEO said:
We hope that Japanese companies, financial intermediaries, digital asset exchanges, and fintech companies will be able to use USDC. Of course, we are carefully considering the new rules and how the USDC will be used in the Japanese market.
Allaire believes that stablecoins linked to legal tender are “very useful” and hopes that major currencies will be available as stablecoins. He also highlighted the potential for stablecoins to increase interoperability between different digital wallets, allowing different payment apps to work together.
In addition, Allaire expressed that the global market for stablecoins will continue to grow as they become an official form of electronic money, with regulations being implemented in major global markets over the next 3-5 years.
He sees demand for digital dollars growing in emerging markets, such as Africa, Latin America, and Southeast Asia, as people and businesses seek stability in the dollar and the convenience of making online transactions.
And now I am in Tokyo. Exploring and trying to understand different opportunities. I think Japan could be a very attractive market for circles.
Circle CEO Advocates For Full Reserve Model For Stablecoins
Circle has already partnered with Yellow Card, Africa’s largest cryptocurrency trading service, to promote USDC in major African cities and provide the ability to convert from local currency to USDC. The company has also obtained a Major Payment Institution (MPI) license to expand its business in Singapore, where demand for USDC is high.
Circle’s CEO believes that an open internet-based model for stablecoins is the most innovative and that a full reserve model, in which assets backing 100% of issued stablecoins are held as reserve assets and cannot be lent out, is the most secure foundation for an internet-scale financial system and the most secure digital cash.
He contrasts this with tokenized bank deposits, which are exclusive to specific banks and their customers and are not open to the entire internet, and carry risks as banks turn deposits into loans.
Allaire also spoke about Circle’s new product, Circle Web3 Services, which is aimed at allowing developers to create various applications using Web3 technology, including digital wallet and NFT applications. Circle’s programmable wallet is also available in beta, designed to support companies developing apps using Web3 technology.
Overall, Circle’s expansion into Japan and other global markets is a reflection of the growing demand for stablecoins and the potential for these digital assets to transform cross-border payments and remittances.
With the company’s focus on providing secure and innovative solutions for the digital economy, Circle is well-positioned to continue leading the way in the stablecoin market.
Circle’s USDC has a circulation of approximately $28 billion and is backed by a fund worth around $28.1 billion, which includes US dollars and short-term government bonds. The fund is managed by BlackRock, one of Circle’s shareholders.
Featured image from Unsplash, chart from TradingView.com