Japan's government is considering using stablecoins to refund consumption tax under its duty-free system for foreign visitors entering Japan. CoinPost, a blockchain media outlet, reported on Oct. 21 that Land, Infrastructure, Transport and Tourism Minister Tatsunori Ibayashi (이바야시 다쓰노리) said in a policy statement to the House of Representatives' Land, Infrastructure, Transport and Tourism Committee that the government will study including stablecoin use in the system.

Ibayashi referred to a refund method in which the consumption tax equivalent is confirmed at departure and then returned, and said the government will push steps from the user perspective. The duty-free system for foreign visitors will switch to this method for purchases from Nov. 1.

According to the Japan Tourism Agency, travellers buy goods at duty-free shops at tax-included prices and receive a refund of the consumption tax equivalent after receiving customs confirmation of export at airports or ports when leaving the country within 90 days of purchase. The refund is handled by duty-free shops or entrusted refund operators.

The private sector is already building related models. Japan Duty Free and JPYC formed a business partnership in March to build a refund model using the electronic payment-type stablecoin "JPYC". The model envisions a structure that does not collect card numbers or account information at stores and instead sends the refund amount immediately to travellers' wallets after customs confirmation.

The government is also continuing to review administrative uses of stablecoins. At the first meeting of the Financial Services Agency's "Onchain Finance Forum Looking Ahead to the AI Era" held on Sept. 30, the Digital Agency said it will examine the possibility of technical use for benefit payments with restricted purposes.

Ibayashi, a former official of the Ministry of Land, Infrastructure, Transport and Tourism, became land, infrastructure, transport and tourism minister in the second Takaiichi reshuffled cabinet launched on Sept. 17. In the Liberal Democratic Party, he served as secretary of the Tax Commission and as deputy acting head of the Finance and Financial Affairs Division.