Yen-denominated stablecoins could help create demand for Japanese government bonds and could help stabilize the market, up to a point. Economists warn that the tempting idea is no panacea and that purchases probably won¡¯t be enough to balance concerns about new debt issuance by Japan and changing central bank policy.
¡°I¡¯d say there is some potential, but I also think there are certain limits,¡± said Eiji Taniguchi, a senior economist at the Japan Research Institute.
Stablecoins ¡ª basically digital clones of fiat money often backed by assets ¡ª are all the rage in Japan, much as they are elsewhere in the world.
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