This is really true.
In other words, what can be done with the parts of money legos is what matters, and there hasn't been a stablecoin that can be redeemed for Japanese yen.
Of course, there are ways to manage Japanese yen in regular financial institutions, but that creates a disconnect from tokenized assets.
Various companies are working on tokenization, but without a JPY stablecoin that can be moved directly on-chain, it feels lacking. It inevitably becomes something inferior to existing finance and DeFi.
Moreover, discussions around JPYC hardly touch on the money lego aspect. It's strange that the fundamental reason why stablecoins are receiving so much attention isn't being discussed, even though that's where the core issue lies.
The key to the adoption of stablecoins in Japan is not payments or remittances, but investment.
If we can earn 4% annually while holding Fiat against the ridiculously low current deposit rates, there is a possibility to mobilize dormant funds.
However, there are currently two main challenges.
1. Exit liquidity
Bank-related stablecoins are limited to domestic financial institutions for redemption, and the basic design is that redemptions can only be made to domestic bank accounts.
As a result, overseas investors/funds find themselves in a situation where "even if they can buy tokens, they cannot convert them back to yen."
2. Liquidity issues
To achieve a minimum investment rate, there are almost no options in yen. Therefore, it is necessary to convert to dollar-pegged stablecoins like existing USDT or USDC, but currently, there is no liquidity like JPY/USDT. Thus, OTC becomes a practical solution, but even that has limited liquidity.
Additionally, there is also the risk of exchange rate fluctuations.
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