Ladies and gentlemen, this move is interesting. Central banks around the world are generally cutting interest rates and flooding the market with liquidity. The Bank of Japan has defied the trend by raising its policy interest rate from 0.5% to 0.75%, marking the first increase since 1995 and the highest level in 30 years. This move has left global financial markets a bit stunned.

Bank of Japan Governor Haruhiko Kuroda was very frank: if they don’t raise rates now, they might face an even more aggressive and dangerous rate hike in the future. The core issue is inflation. Japan’s consumer price index has been rising for over 50 consecutive months, and a spiral of rising wages and prices is taking shape. Ironically, Japan, which has been plagued by deflation for 30 years, is now finally experiencing inflation, and the central bank is eager to prove it can manage the situation.

What is behind this phenomenon? There is a clear divergence in global central bank policies. The Federal Reserve and the Bank of England are both injecting liquidity, while Japan is stepping on the brakes. At this crossroads, the effectiveness of traditional financial policies is becoming increasingly uncertain. As a result, participants in the crypto world see new possibilities—decentralized stablecoins, as assets not tied to the policies of any single country, are being reevaluated. Stablecoin mechanisms that are not constrained by any central bank’s unilateral decisions and maintain relative independence are indeed showing their unique position amid the growing divergence of global central bank policies. This window of opportunity may truly have arrived.