The Bank of Japan (BOJ) is calling attention to the shift underway in global payments infrastructure, with Deputy Governor Ryozo Himino asserting that stablecoins may soon begin to “partially replace the role of bank deposits.”
Speaking at the 2025 GZERO Summit in Tokyo, Himino emphasized that with non-bank financial institutions now holding nearly half of global financial assets, regulators must modernize oversight frameworks to keep pace with these evolving dynamics. He specifically cited stablecoins as a key area where regulation lags behind innovation.
Unlike legacy systems such as SWIFT or ACH, stablecoins offer quicker settlement, lower fees, and around-the-clock transfers. Himino said these traits give them the potential to become core components of payment ecosystems, thereby challenging traditional deposit-based banking models.
The comments come amid a growing push within Japan to embrace digital currency infrastructure: major banks like Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG) and Mizuho Financial Group (Mizuho) are reportedly collaborating to issue yen- and dollar-pegged stablecoins under a shared technical standard.
By signalling itself ready to embrace a future where tokenised money plays a central role, the BOJ is positioning Japan to compete in the rapidly growing “stablecoin settlement” era, while also urging global regulators to accelerate efforts to adapt. According to Himino, “we need to continue to modernise international prudential standards to keep up with the new and emerging realities.”