Japan has launched the world’s first stablecoin directly pegged to its national currency, the Japanese yen, Reuters reported. The move is significant for a country traditionally dominated by cash and credit card payments.

The launch was spearheaded by Japanese startup JPYC, which has launched its own digital asset called JPYC. The stablecoins are fully backed by yen and are backed by both domestic savings and Japanese government bonds (JGBs).

JPYC CEO Noritaka Okabe outlined the company’s ambitious goal: to issue 10 trillion yen worth of stablecoins over the next three years, equivalent to approximately $66 billion. According to the startup’s management, the digital asset is aimed at widespread use, including in international markets.

To encourage adoption of the new stablecoin, JPYC plans to initially charge no transaction fees. This should encourage users to try out the digital currency and learn about its benefits.

The company’s main source of revenue will be a percentage of its holdings of Japanese government bonds, which serve as collateral for the stablecoins. This model allows JPYC to remain stable against the yen and ensures user confidence.

Analysts say the launch of JPYC could be the first step in Japan’s gradual transition to digital currencies, combining traditional financial instruments with innovative technologies. This project opens up new opportunities for international transactions and the digital integration of the Japanese economy.