The world's first stablecoin directly pegged to the Japanese yen launched in Japan on Monday.

This is a small but significant change in a country where consumers have traditionally preferred cash and credit cards.

Japanese startup JPYC has started issuing stablecoins, also known as JPYC, that are fully convertible into yen and backed by domestic savings and Japanese government bonds (JGB).

JPYC CEO Noritaka Okabe has outlined an ambitious goal of issuing 10 trillion yen (or $66 billion) worth of stablecoins over the next three years. The company hopes to see widespread use of the digital asset, especially abroad.

To encourage early usage, JPYC does not plan to charge transaction fees. The company wants to earn interest from JGB's ownership, which serves as collateral.

What is known about stablecoins

Blockchain-based stablecoins are known for enabling faster and cheaper fiat-pegged transactions.

According to the Bank for International Settlements, US dollar-pegged stablecoins have surged thanks to strong support from US President Donald Trump and now account for more than 99% of the global stablecoin supply.

Interest in stablecoins is also increasing worldwide, and three Japanese megabanks will jointly issue stablecoins.

Recall that Dante Disparte, head of global policy at Circle, the issuer of the USDC stablecoin, believes that stablecoins can become the main means of payment in the world in the near future.