BoJ's Himino: appropriate to keep raising rates in line with economic, price trends

BoJ's Himino: appropriate to keep raising rates in line with economic, price trends

Japan is gearing up for a significant shift in its financial landscape with the imminent launch of yen-backed stablecoins, coinciding with the Bank of Japan's (BOJ) anticipated interest rate hikes. This move, led by fintech firms like JPYC and Monex Group, is aimed at enhancing international remittances and corporate settlements [1].

The Bank of Japan is expected to raise interest rates in the coming months, a move that could boost the yen's appeal and drive investors towards JPY-backed stablecoins. Hiroshi Nakazawa, head of Hokuhoku Financial Group, predicts a 25 basis point rate hike at the BOJ’s October meeting, aligning with broader market consensus [1].

The yen's strengthening and rising government bond yields have already impacted cryptocurrency markets, with the BTC/JPY pair dropping 8% this month [1]. This sell-off is a reflection of the yen's increasing attractiveness amidst the anticipated rate hikes.

Wall Street's growing interest in cryptocurrencies is evident with JPMorgan committing up to $500 million to Numerai, a crypto-friendly hedge fund. This move underscores the expanding role of digital assets in traditional finance [1].

Meanwhile, Japan Post Bank is set to launch a digital yen by the end of fiscal 2026, further integrating blockchain technology into the country's financial ecosystem. This digital currency, "DCJPY," is fully backed 1:1 by fiat yen and will facilitate instant transactions of digital securities and other blockchain-based assets [2].

The BOJ's decision to continue raising rates in line with economic and price trends is seen as appropriate, positioning Japan as a leader in digital currency innovation while navigating a dynamic monetary policy landscape.

References:
[1] https://blockonomi.com/japan-set-to-launch-first-yen-backed-stablecoins-in-fall-2025/
[2] https://www.businesstimes.com.sg/companies-markets/banking-finance/japan-post-bank-launch-digital-yen-2026