Japan Considers Yen-Based Stablecoin for Foreign Tourist Tax Refunds

The Japanese government is considering the use of a yen-based stablecoin for tax refunds for foreign tourists. The plan aims to simplify the process for tourists to receive tax refunds through digital wallets upon departure. Starting November 1, Japan will transition its duty-free shopping system for foreign tourists to a refund method, requiring payment of the price including tax upfront. After customs verifies the export of purchased goods, the consumption tax will be refunded. According to a Japanese digital asset media outlet, Tatsuya Ibayashi, the Minister of Land, Infrastructure, Transport and Tourism, stated that they will promote responses from the user's perspective, including the review of stablecoin utilization. However, specific implementation schedules and operational methods have not yet been finalized. A Japanese digital asset market analysis firm assessed that yen-based stablecoins could serve as a means to quickly disburse refunds. Discussions related to this have already begun in the private sector, and there is growing interest in the possibility of linking consumption tax refunds using stablecoins to public systems. However, issues such as identity verification for foreign tourists, digital wallet security, and anti-money laundering regulations remain to be addressed. Japan is also working on the establishment of regulations related to digital assets, while the global stablecoin market is still dominated by dollar-based tokens.

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