Bank of Japan Deputy Governor Ryozo Himino said on Oct. 21 that stablecoins could become a major component of the global payment system and even partially replace traditional bank deposits.
The remarks, made during a speech reported by Reuters, highlight how digital-currency innovations are rearranging financial-system priorities.
Himino noted that non-bank financial institutions now hold roughly half of global financial assets, and many of these institutions sit outside the scope of current regulatory regimes such as the Basel III banking standards. “Stablecoins might emerge as a key player in the global payment system, partially replacing the role of bank deposits,” he said.
In his address, Himino urged global regulators to overhaul prudential standards to reflect rapidly evolving realities, saying that while “regulators are doing a lot in these spheres, much more needs to be done.”
The deputy central-bank official argued that the shift toward digital-asset payment solutions, especially stablecoins, demands a more agile regulatory framework to avoid fragmentation of global markets.
In particular, he said U.S. banks, given their dominant dollar-deposit base, have a competitive advantage and should lead development of common standards to govern stablecoin issuance and use.
Himino’s remarks come amid growing interest in stablecoins by major banks around the world. For example, Japanese lenders are reported to be jointly exploring the issuance of yen- and dollar-pegged stablecoins as part of deepening corporate payments infrastructure.
The comments signal a shift in thinking at one of the world’s major central banks: rather than dismissing stablecoins as fringe, the Bank of Japan appears to view them as a legitimate part of the future payments ecosystem, so long as they are regulated properly.
Regulators and market participants will now watch closely how frameworks develop and whether stablecoins deliver the reliability, safety and interoperability required for broader financial-system integration.