When it comes to the use and distribution of Stablecoins, there exists a conundrum in multiple countries. According to regulators in the US, financial institutions should not have access to Stablecoins, and a much esteemed financial service operating in Japan by the name of B2C2 thinks the same as it agreed to move along with this unanimously as per the stakeholders involved in this. Joerg Schmidt, who is the director of the strategy at B2C2, says that the firm has made up its mind to move this very decision forward.
But there is one thing that the firm is not clear about, and that is the long-term implications of this decision. According to the onboard crypto analysts, these are only going to be minute if there are any implications regarding this decision given a very small market for the digital Yen and its related Stablecoins. Although this decision might not have an immediate impact on the financial institutions or economy of Japan, the long-term implications just can’t be ignored. If the firm has made up its mind to go through with this decision, then there should be a proper framework to tackle any complications that arise because of this decision.
To give their decision some backing, the representatives of the firm say that this decision is perfectly in line with International Development and regulatory standards. If this decision is to go through then, all Stablecoins out there would have to be first registered as the money transmitters or be licensed through a bank.
There is another thought on the subject that if all of it doesn’t work and at the end of the day some regulations are to be drafted or updated, then it could also be done in the distant future. The digital yen-oriented Stablecoins are not trading in dominant volumes, and that is why this decision to go through with the limitation of issuing Stablecoins to the financial institutions might not have any significant impact.