Japan's LDP blockchain panel urges government to back JPY stablecoin, allow crypto ETFs

The blockchain promotion committee of Japan's ruling Liberal Democratic Party has submitted a proposal to the government urging the creation of a regulatory framework to encourage the use of yen-based stablecoins and permit the trading of cryptocurrency ETFs, Reuters reported. The committee suggested that the yen stablecoin could be promoted at the Asian Development Bank's annual meeting, which Japan will host in May 2027, and noted that related experiments are already underway, led by the Financial Services Agency and major banks. The report added that despite the proposal, authorities remain concerned that stablecoins could disrupt the traditional financial system. The Bank of Japan has also previously indicated the need for a multifaceted approach to the global monetary system that extends beyond stablecoins.