When the sound of the millennia-old merchant guild's abacus collides with the wave of blockchain code, Japan has used a JPYC stablecoin to build a digital era rainbow bridge on the moat of traditional finance.

The Japanese Financial Services Agency has officially approved Coincheck's issuance of the JPYC stablecoin, which is a digital currency pegged to the yen at a 1:1 ratio and will become the world's first strictly regulated "sovereign stablecoin." Its uniqueness lies in the fact that the issuer must report reserves to the central bank daily, and the funds must be held in domestic Japanese banks—this is equivalent to putting a "traditional financial constraint" on the stablecoin.

I have observed three key signals: First, Japan is embracing the crypto revolution in the most conservative way, just as it once regulated exchanges with the "virtual currency exchange operator" licensing system; Second, JPYC may become a tool for institutional investors to hedge against yen depreciation, referencing the 18% plunge of the yen in 2022, during which Bitcoin's premium on the Japan Exchange reached 7%; Third, this marks the official start of the Asian stablecoin battlefield, with Singapore's XSGD and South Korea's KRWt watching closely.

Recalling that after Japan recognized Bitcoin as a legal payment method in 2019, Rakuten Group immediately launched a crypto wallet, resulting in a 300% surge in trading volume on the Japan Exchange. The compliance of JPYC seems to pave the way for traditional financial institutions—Sumitomo Mitsui Banking Corporation has announced it will explore using JPYC for cross-border settlements, similar to how JPMorgan Chase issued JPM Coin to reconstruct financial pipelines with stablecoins.

Want to know what kind of dark humor will emerge when the Yamaguchi-gumi's money laundering paths meet the blockchain traceability of JPYC? Follow me for the next installment, which will break down "Japan's Crypto Compliance Triple Gate: From Exchange Licensing to Stablecoin Regulatory Sandbox" and its hidden script.

Now, do you think JPYC will become the next Tether, or will it repeat past mistakes? See you in the comments section of the Block Key! #币安HODLer空投PLUME