The second most important bank in Japan developed a stablecoin expected to go on sale this new year
Mizuho Bank will launch a cryptoactive linked to the Yen in March. It will have a livelihood in liquidity in the current Japanese currency: The Yen, and will be used as a direct, instant and very low-cost payment method.
According to a release, the cryptoactive will be available to bank customers at the end of this first quarter of the year and may be used by means of an App for smartphones, which will function as a digital wallet.
The user can make their financial transactions generating a simple QR code (with a ratio of 1: 1). Also, people can, among other things and for free, transfer the funds to another user and make online purchases on massive platforms such as the giant Chinese Alipay.
The name of this cryptoactive is still unknown, but according to some reports, the financial giant was immersed in the project since 2017, which its CEO team named J-Coin.
Mizuho Bank made financial alliances with 60 other banks to strengthen the fund for its development. This project will represent a direct competition to the credit card companies, since it would minimize the cost of commissions for the large retail market in Japan. This is one of its benefits.
Tatsufumi Sakai, Mizuho Financial Group’s president, commented this is the future of financial transactions, since it allows a high flow of financial movements at very low costs. “The business of financial agreements has become more important and is expected to continue growing. So, we have to take a serious approach”, he concluded.
“We will do business with other companies if we have the opportunity. Time and speed are very important. There is a limit to what we, as a financial institution, can develop through our conventional businesses. We are focusing on the new technology”, Sakai commented as a representative of the bank.
In Japan there are also other financial entities that are focused on the development of this new technology. It is the case of the UFJ Mitsubishi Financial Group, the fifth largest bank in the world, which recently projected its capitalization of the MUFG, a digital currency that it plans to implement by the middle of 2020.
Mizuho Financial Group is a public bank that currently generates 1.45 trillion yen in revenues (about 13,000 million dollars a year), making it one of the most important banks in Japan.
According to Japanese legislation, the FSA (Financial Services Agency) is in full discussion about the inclusion of cryptocurrencies in a legal category, in order to control and regulate the use of cryptoactives in that Asian country.
Mazuho banking institution plans to have this technology in operation across the country for the next Olympic Games, which will be held in Japan in 2020. For this reason, the Japanese Government has exonerated these financial institutions of some tax stamps, in order to encourage companies to invest in this new technology.
By María Rodríguez