On August 17, 2025, Indonesia marked its 80th Independence Day with a bold stride into the future of digital payments. Bank Indonesia officially launched the QR Code Indonesian Standard (QRIS) for use in Japan, a move that not only celebrates national pride but also signals Indonesia's ambition to shape the global digital payment landscape. The timing couldn't be more symbolic: as the world watches shifts in digital asset leadership, Indonesia is staking its claim as a regional—and potentially global—fintech innovator.
Initially, Indonesian QRIS users can now make payments at 35 participating Japanese merchants simply by scanning the JPQR Global code using domestic payment apps. These apps span mobile banking services from 14 national and regional banks, as well as a variety of mobile wallet platforms. According to OpenGov Asia, this collaboration involved a host of heavyweights: Bank Indonesia, the Indonesian Payment System Association (ASPI), Japan’s Ministry of Economy, Trade and Industry (METI), the Payment Japan Association (PJA), JPQR Global operator Netstars, and other key stakeholders. The goal is clear—expand the reach of QRIS to more Japanese merchants and, in turn, increase the presence of Japanese businesses in Indonesia.
This cross-border payment initiative is more than a technical upgrade. It's part of a larger strategy to foster economic cooperation, facilitate tourism, and support seamless transactions for Indonesians traveling or doing business in Japan. Bank Indonesia Governor Perry Warjiyo emphasized that "the continuous development and innovation of QRIS are central to expanding its adoption internationally, supporting micro, small, and medium enterprises (MSMEs), and facilitating tourism and trade." Deputy Governor Filianingsih Hendarta added that the QRIS expansion into China is also progressing positively, with agreements signed to finalize business, technical, and operational arrangements.
Indeed, Indonesia isn't stopping at Japan. Trials are underway to interlink QRIS with China's payment system, in collaboration with the People’s Bank of China. Four Indonesian switching service providers—PT Rintis Sejahtera, PT Alto Network, PT Artajasa Pembayaran Elektronis, and PT Jalin Pembayaran Nusantara—are working closely with China’s UnionPay International to ensure seamless interoperability. Sandbox testing is in progress, laying the groundwork for broader adoption.
Since its launch in 2019, QRIS has become the backbone of Indonesia’s digital payment ecosystem, now serving over 57 million users. Its cross-border expansion began with neighboring ASEAN countries such as Malaysia, Thailand, and Singapore. Between January and May 2025, QRIS cross-border transactions saw robust uptake among tourists, especially Malaysian visitors in Batam—a trend that underscores the growing preference for cashless payments among younger travelers. Bank Indonesia has also focused promotional efforts on regions like Johor Bahru and Singapore to further encourage QRIS adoption among tourists, reflecting a broader regional shift toward digital solutions over traditional cash.
While Indonesia’s digital payment infrastructure is expanding, Japan is experiencing its own transformation in the digital asset space—albeit with a different set of challenges and opportunities. According to Coinotag, Japan’s influence in the global Bitcoin market has declined significantly, with the nation now holding just 1–2% of global Bitcoin reserves. Once a pioneer in crypto adoption, Japan’s position has been eroded by strict regulations and a retail-focused market structure that has limited institutional participation. The Japanese Financial Services Agency has yet to finalize major policy changes that would open the door to broader institutional adoption, allowing countries like Norway and Kazakhstan to seize the initiative.
Norway, for example, has emerged as a new powerhouse in institutional crypto investment. Its sovereign wealth fund increased Bitcoin exposure by a staggering 192% over the past year, and the country is developing institutional-grade investment vehicles—hedge funds and pension funds—that are allocating to digital assets. These efforts are supported by a pilot program granting institutional access to crypto through the sovereign wealth fund, reflecting a more open regulatory climate. Kazakhstan, too, is making waves by overhauling its regulatory framework, introducing tax incentives for institutional blockchain investors, and planning to convert a portion of its assets into cryptocurrency. Local exchanges and custody solutions are attracting international investors, signaling Kazakhstan’s growing role in the global digital asset ecosystem.
Japan, meanwhile, is on the verge of a historic policy shift. As reported by Blockchain Magazine, regulators are considering allowing the country’s first stablecoins pegged to the Japanese yen. This move, if approved, would be more than a technical milestone. Yen-backed stablecoins—digital tokens whose value is tightly linked to the yen—could combine the stability of traditional currency with the efficiency and programmability of blockchain technology. For a country that has historically prioritized consumer protection and financial stability, this signals a new openness to financial innovation.
Pressure for change has been mounting from business groups, fintech startups, and international precedents. The Eurozone, Singapore, and the UK have all piloted or approved fiat-backed stablecoins, demonstrating the benefits for payments, remittances, and digital commerce. If Japan follows suit, it could boost digital payment efficiency, strengthen currency sovereignty, attract investment, and support decentralized finance (DeFi) platforms tailored to Japanese users. It would also help Japanese companies expand their global reach, enabling smoother trade settlements and remittances using yen stablecoins.
However, risks remain. Regulatory oversight will be crucial to prevent money laundering and protect consumers. Cybersecurity is another concern, as digital tokens are vulnerable to hacking and theft if not properly secured. Market competition is fierce, with yen stablecoins needing to carve out a niche in a landscape dominated by dollar-based tokens like USDT and USDC.
Japan’s retail market and technological infrastructure remain strong, but the broader shift of institutional capital to markets with more favorable regulatory conditions—like Norway and Kazakhstan—highlights the changing priorities in global crypto investment. Licensed crypto custodians and regulated fund vehicles are rising in these countries, developed in coordination with international financial firms and legal advisors to provide the compliance and security institutional investors require.
For Indonesia, the international rollout of QRIS and the ongoing trials with China’s payment system represent a proactive approach to digital economy partnerships. By integrating with international payment systems, Indonesia is not only strengthening economic cooperation and financial inclusiveness but also showcasing technological innovation on a global stage.
In contrast, Japan’s cautious regulatory approach has preserved consumer trust but has also slowed institutional momentum. The potential approval of yen-backed stablecoins may mark a turning point, signaling a willingness to balance innovation with risk and to bridge the gap between traditional banking and blockchain-based financial tools.
As digital payments and assets continue to reshape the global financial landscape, the experiences of Indonesia, Japan, Norway, and Kazakhstan offer a telling snapshot of both the challenges and opportunities ahead. Whether through QR codes, stablecoins, or institutional-grade crypto investments, the race to define the future of money is well underway—and the winners will be those who can adapt, innovate, and collaborate across borders.
