One of the most important stories that emerge from the Far East this month is the imminent launch of a Blockchain -based version of the Japanese Yen, one of the world’s main fiduciary currencies.
The moment of this development could not be better, since the Bank of Japan (BOXWOOD) It is widely expected to increase interest rates soon, a movement that probably increases the attractiveness of yen assets and backed by yen.
Earlier this month, COINDESK reported that Japan’s Financial Services Agency (FSA) It is likely that you approve the first stable-dome called in yen as soon as this autumn. According to the report, the Fintech headquarters based in Tokyo JPYC plans to register as a money transfer business within the month and will lead the deployment of a JPY pigelas stablocoin, which will be negotiated with a 1: 1 relationship with the Japanese Yen.
The stable are cryptocurrencies that are linked to an external reference, such as the US dollar, the euro or the yen. These tokens play a crucial role in facilitating capital transfers used for trade, investment, remittances or international payments, all while avoiding volatility typically associated with other cryptocurrencies.
JPYC is not alone in the search for a Yen stable. Last week, the Tokyo Financial Services Company, Monex Group, announced that he is considering launching his own JPY Stablecoin aimed at international remittances and corporate settlements. Oki Matsumoto, president of Monex Group, told local media: “Stablecoins issuance requires significant infrastructure and capital, but if we do not handle them, we will be left behind.”
BOJ Tarie Camio
Both the main bankers and merchants expect the BC of the BC to increase rates in the coming months, while the United States Federal Reserve is seen doing otherwise.
Hiroshi Nakazawa, head of Hokuhoku Financial Group, one of Japan’s largest regional banks, said during the weekend that the BAN could increase interest rates in October or December, assuming that “things go well.”
The actions in Hokuhoku Financial Group have been the best performance banking actions this year, with prices that increase 90% to exceed the Topix banks, which includes 70 lenders.
Nakazawa’s perspective aligns with the broader consensus on the market on the next rate increases. According to Bloomberg Economics, the recently published Tokyo Inflation Report probably reinforced Boj’s opinion that the impulse of consumer price remains strong, on the way to reaching its 2%target. The team predicts an increase in the 25 basic points rate at the October meeting.
The increase in early rates could incite investors to move funds to stablcoins backed by JPY. Remember that the Fed 2022 rate rate cycle was considered as a driving demand for USD’s stable, although Stablecoins appeal was temporarily abolished by Terra’s accident in May 2022.
The BC increased rates twice in recent years, from 0.1% to 0.25% in July last year and then another increase of 25 basic points in January. Since then, the Central Bank has maintained stable rates.
Japanese yields increase, BTC/JPY GOTS
Returns on the bonds of the Japanese Government of longer duration (JGBS)The third largest government debt market after the United States and China, have risen to multiple decades, reflecting tax concerns and the strong expectation of an imminent increase in BC rates.
For example, 30 -year JGB yield recently increased to a maximum record of more than 3.2%, while 10 -year yield reached 1.64%, levels not seen since 2008, according to TrainingView data.
The appeal of YEN is the narrow gap between the yields of 10 years of Americans and Japanese, which has been clenched at 2.62%, the lowest since August 2022. Because the exchange rate of USD/JPy closely tracks this performance differential, a macromicer regression analysis suggests that the torque should negotiate around 144.43, compared to the level of approximately approximately Friday of approximately approximately approximately 147.00.
In other words, the regression analysis points to the appreciation in the YEN.
The strengthening yen and the expected rate increases also involve the low potential for BTC/JPY. The pair of cryptocurrencies listed in Bitflyer has already fallen 8% this month, reaching its lowest level since July 9. This recent total sale has triggered a classic double bassist investment pattern in the daily table.
The technical analysis using the measured movement method suggests that double breakdown could lead to prices to approximately 14,922,907 JPY. This objective is calculated by subtracting the height between the two peaks and the provisional channel from the low channel, which indicates a higher downward risk for a bitcoin price in Yen.