According to Bloomberg, Japan’s parliament has introduced a legal framework for stabelcoins. The law ensures that stabelcoins must be tied to a yen or other fiat currency, and holders of such assets have the right to redeem them at par value.
Japan is one of the first major economies to pass such a law.
According to the document, stabelcoins will be considered digital money. Thus, only licensed banks, registered money transfer agents and trust companies can issue them.
The law does not apply to existing stabelcoins, asset-backed or algorithmic stabelcoins.
It will take effect in a year.