Western Banking Giant Mizuho to Establish Its Yen-Pegged Stablecoin in March

A dedicated cellular program, dubbed J-Coin Purchase, together with QR codes to finish payments will allegedly manages the currency. According to Nikkei, the currency will be a electronic stablecoin fixed in a price of 1 yen (~$0.01) per unit, and transfers between bank accounts and J-Coin pockets are put to be zero-fee.

Since Nikkei notes, despite the megabank’s perspective user base and alliance, its own goal user outreach falls short of Line’s existing 79 million users. Line Purchase, moreover, is already reportedly supported at 1.3 million stores.

Its currency plans were first declared by Mizuho in late December 2018 as previously reported.
In a venture with around 60 counterpart institutions — which reportedly host 56 million consumer accounts — Mizuho’s “J-Coin&rdquocurrency platform will directly associate bank balances with digital wallets.  

Mizuho is thus reportedly further following a partnership strategy with rsquo & Alibaba;s Alipay to assist Pay gain traction with stores. Additionally, it intends to charge merchants transaction fees.

In a bid to set up the platform Mizuho is reportedly now negotiating with retailer Bic Camera, as well as convenience store FamilyMart and transportation firm East Japan Railway. Its purported intent is to onboard no less than 300,000 stores and join at 6.5 million consumers within a couple of years.
According to Nikkei, potential wallet consumers will not be required to undergo credit ratings and the support will be available to customers. Wallets will serve a flexible range of payments and remittance services than traditional bank accounts — with choices for coworkers to split invoices or for family members to move pocket cash.

Mizuho CEO Tatsufumi Sakai advised Nikkei that “the arrival of all of these new entrants [to the digital payments space] is eroding the common-sense belief that payment services are offered by financial institutions.” Since Nikkei notes, payment innovators like discussion program provider Line and giant Rakuten, which has launched its cryptocurrency and in-house blockchain already serve Japan.

In January 2018, the following Japanese banking giant — Mitsubishi UFJ Financial Group s bank — introduced its plans to launch a yen-pegged stablecoin. MUFG intends to launch a blockchain-powered payments platform, in partnership with United States content delivery system Akamai, by H1 2020.