Today, we witnessed the end of a financial era—the Japanese negative interest rate policy, in place for seventeen years, has been officially terminated. Don’t underestimate this step; it’s not just a routine rate hike, but a structural shift capable of triggering a global re-pricing of assets.

The Bank of Japan has broken the last fortress of zero interest rates worldwide. Negative interest rates are no longer Japan’s story; instead, they mark the decline of one of the most important rules of global capital flow over the past two decades—yen carry trade—is losing its economic foundation.

What does this mean? Two direct consequences:

**The era of cheap capital is over.** Previously, international capital could borrow yen at zero cost and then move into high-yield global assets (from stocks to cryptocurrencies), earning risk-free interest differentials. The cost of this "free lunch" has sharply increased. Some funds will inevitably flow back or close positions, and markets worldwide will have to digest this "bloodletting" shock.

**The credibility of central bank policies is wavering.** The Bank of Japan talks about raising rates but actually maintains easing—after all, the debt pile is too high to withstand real tightening. But this ambiguity alone is enough to alter market expectations. The curtain on global zero-cost capital has officially fallen.

When the core support of traditional finance (central bank liquidity injections) becomes unstable and directionless, capital instinctively seeks a more solid, autonomous new anchor. This shift is driving capital to focus on genuine innovations in the crypto world—such as decentralized USD stablecoins.

Their logic is completely different from traditional stablecoins. They no longer passively rely on central bank policies but achieve self-regulation and transparency through on-chain mechanisms. When the central hub of the financial system becomes unreliable, sovereign-level financial innovations may become the next safe haven for capital.