G7’s Stablecoin Circus: Who’s Winning the Digital Money Race? 🤡💰

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Ah, the Group of Seven-seven titans of finance, now tiptoeing into the slippery puddle of stablecoins. The US has finally dusted off a law, the EU has rolled out its MiCA decree, and Japan, ever the show-off, is already running a live regime as if to say, “Pay attention, children!”

So far, dollar-pegged tokens like Tether’s USDT and Circle’s USDC have been hogging the spotlight. But now the regulators, armed with pens and bureaucratic gusto, are chasing after these slippery creatures, hoping to tether them to their own currencies. Spoiler alert: it’s messy. 😅

The G7’s regulatory frenzy is part of a global tug-of-war over digital cash, while BRICS nations watch from the sidelines, waving their shiny state-issued coins like, “We don’t need your private stablecoins, thanks very much.”

Here’s the tragicomic rundown of how each G7 nation is wrestling with stablecoins.

Japan and the first stablecoin law

While everyone else was debating over coffee, Japan quietly amended its Payment Services Act in June 2023, allowing trust banks, regular banks, and other approved entities to issue stablecoins. The race is now on to launch the first yen-pegged marvel. 🏁

Startup JPYC seems to have grabbed the baton, already approved to issue a yen-backed token. Even local fintech Nudge announced that from October, you could pay your credit card bills with JPYC. Who said bureaucracy can’t be fun?

US stablecoin law ripples across the world

The US only joined the party in 2025, when President Donald Trump signed the GENIUS Act on July 18. This law demands issuers to maintain 1:1 reserves, forbids interest to holders (ouch!), and sets up a dual oversight system: federal or state supervision under $10 billion. Foreign stablecoins can participate if their home regimes are “comparable”-whatever that means. 🧐

Tether immediately announced USAT, a US-domiciled stablecoin, and began hunting for up to $20 billion in fresh funding. GENIUS was meant to fortify the dollar, but some warned it might trigger a tidal wave of dollar tokens or even chaos in payment systems. Classic unintended consequences!

Banks and fintechs are lining up for their chance in this bureaucratic rodeo. Bank of America is eyeing its own tokens, Stripe is building Tempo for stablecoin flows, and somewhere, a compliance officer is quietly sobbing. 😅

MiCA greenlights stablecoins for EU banks

MiCA, the EU’s crypto gospel, was published in June 2023 and phased in a year later. Italy, Germany, and France get the star treatment. The rules are strict: 1:1 reserve backing, white papers, authorization, capital requirements, and daily transaction limits. It’s like a stablecoin boot camp. 🏋️‍♂️

By 2025, EU regulators began cracking down. Non-compliant tokens like USDT were restricted, while Circle proudly waved its euro-backed EURC as MiCA-compliant. Nine banks, including ING and UniCredit, announced plans for a euro stablecoin. French bank Société Générale was already ahead, issuing both dollar and euro stablecoins on Ethereum and Solana. Oui, mon ami! 🇫🇷

UK’s hot and cold stablecoin proposals

The UK is flirting with stablecoins. In October 2023, HM Treasury confirmed the FCA would regulate issuance, while the Bank of England oversees wallets and systemic payment systems. But as of 2025, it’s mostly proposals and consultations. Think of it as a slow waltz rather than a sprint. 💃

Some banks are looking abroad. Standard Chartered is angling for a Hong Kong license, because why stay local when the world is your playground?

Canada’s stablecoin law lags behind other G7 nations

Meanwhile, Canada, polite as ever, has no dedicated stablecoin law. Oversight is spread thin across existing regulatory silos. Stablecoins are treated as securities or derivatives depending on the trading platform. The Bank of Canada got supervisory powers in 2024, but stablecoin issuers remain in a gray limbo. 🍁

For now, Canadian issuers must dance to the tune of securities-law conditions if they want to reach investors. Eventually, maybe they’ll be fully embraced under payment supervision. Until then, it’s polite waiting and endless paperwork.

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2025-09-29 16:45