Stablecoins Poised to Challenge Traditional Bank Deposits: BOJ

Highlights:

• Bank of Japan’s Himino said stablecoins could soon become a key part of global payment systems.
• He urged regulators to accept new realities as digital assets reshape traditional banking.
• Japan plans to modernize banking rules and support yen-backed stablecoins for cross-border use.

Bank of Japan Deputy Governor Ryozo Himino has underlined the growing importance of stablecoins as part of the global financial system. Speaking to Reuters on October 21, Himino said stablecoins could soon play a key role in the world’s payment structure and urged regulators to adapt to changing market conditions.

Himino Says Stablecoins Could Rival Traditional Bank Deposits

Ryozo Himino noted that stablecoins might one day take on functions similar to traditional bank deposits. Unlike conventional banking systems, stablecoins allow instant transfers, lower transaction fees, and round-the-clock accessibility. Himino said these features make them more efficient than legacy payment systems such as SWIFT or ACH.

He pointed out that global regulators must start acknowledging “new realities” as non-bank financial institutions gain a larger share of the market. His remarks show a gradual shift among central banks toward digital assets. 

Himino noted that U.S. banks hold the largest dollar deposits, granting them a significant global edge. He emphasized their potential role in establishing common financial standards to prevent market fragmentation. He also urged regulators to educate the public on the benefits of shared rules for national stability.

Himino mentioned that there’s never been one solution for every problem. Now, he said, it’s important to stay flexible and adapt to each situation while taking quick action when opportunities come.

BOJ Deputy Governor Ryozo Himino says #stablecoins could become a key part of the global payments system, even partly replacing bank deposits.

Non-bank financial institutions now hold half of global financial assets, highlighting the need for stronger regulation. … pic.twitter.com/nWRTDHJDBM

— SWFT Blockchain (@SwftCoin) October 21, 2025

At the 2025 GZERO Summit in Japan, Himino said G20 countries should fully follow the Basel 3 rules. These rules were made after the 2007–2008 financial crisis to make banks safer with better checks and risk control. He noted that some major economies, like Singapore and parts of the European Union, have delayed them many times. He mentioned that regulators are working hard, but more effort is needed. Himino also said global banking rules must keep up with new financial changes, said at the Summit. His comments showed Japan’s plan to stay updated with modern rules as digital finance grows quickly.

Japan’s Top Banks Plan Yen-Backed Stablecoin to Challenge Dollar Dominance

In February 2025, Japan’s Financial Services Agency approved new reforms to make stablecoin issuance and crypto brokerage easier. The decision followed growing interest from Japanese banks looking to issue yen-backed stablecoins to reduce the dominance of the U.S. dollar in international markets.

Recently, three top financial institutions, Sumitomo Mitsui Financial Group (SMBC), Mitsubishi UFJ Financial Group (MUFG), and Mizuho Financial Group, revealed plans to create a yen-pegged stablecoin. The project also aims to build one payment platform to simplify cross-border transactions and cut costs using MUFG’s blockchain network, Progmat.

Japan’s Major Banks Launch Yen-Backed Stablecoin Partnership

Japan’s financial sector is taking significant steps toward integrating cryptocurrency technologies, with three major banks planning to jointly issue a yen-pegged stablecoin. This initiative…… pic.twitter.com/WR99AIb4ah

— Crypto Breaking News (@CryptoBreakNews) October 17, 2025

Other Asian countries are doing the same. South Korea is making stablecoin rules, and Hong Kong is starting a licensing system. These efforts show the region’s growing interest in blockchain finance.