Instead of disrupting the established SWIFT network, Japan's stablecoins are positioned to work alongside it. They offer a parallel system for faster, cheaper transactions, potentially reducing fees by up to 80%, while leveraging SWIFT's existing trust and compliance frameworks for broader adoption.
Japan's approach is not an "either/or" choice between CBDCs and private stablecoins. It views a potential government-issued CBDC as the foundational public infrastructure upon which private companies can build innovative stablecoin-based financial products and services, fostering a dual-track digital economy.
Despite being a latecomer, Japan's regulatory framework is setting a global precedent. Its strict requirements—such as 100% backing by high-quality liquid assets and a ban on algorithmic stablecoins—are being mirrored by other major financial centers, positioning Japan's model as the new standard for trust and stability.