Japan’s Mizuho Financial Group Ready To Launch Own Cryptocurrency
The second largest bank in Japan, Mizuho Financial Group, will be launching a new stablecoin pegged to the yen. The intention is to release this virtual currency in March 2019. The information was released in a report by Finance Magnates a few days ago.
New Stablecoin to Enter the Market in 2019
Mizuho Financial Group will be releasing a new stablecoin to the market as soon as March 2019. The main purpose of this decision is to make payments and transfers using a mobile application.
At the moment, the new coin does not have a name but it will be rolled out to retail shops and other regional banks. It will also enable transactions between individuals and purchases in different stores. This would allow companies to reduce costs since this virtual currency will not have transaction fees compared to credit cards.
Although the service is free, banks will benefit from data provided by individuals and other consumer spending patterns.
Japan has been trying to regulate the virtual currency market during the last year. Back in 2017, a consortium of banks launched the J-Coin project. This idea received support from the Japanese central bank and the financial regulator of the country. It is expected for it to be ready for the 2020 Tokyo Olympics.
Mizuho has also been working with blockchain technology in order to improve its services. During 2017, the company completed a finance transaction using blockchain technology. It involved sending information from Japan to Australia and using key financial data.
There have been different companies launching stablecoins in 2018. Tether (USDT), the most popular digital asset in the market has been criticized after being involved in different controversies. Other stablecoins launched include Gemini USD (GUSD), Paxos Standard (PAX) or USD Coin (USDC).
A few days ago, some rumours spread about Facebook releasing its very own stablecoin for WhatsApp. Apparently, the social media giant wants to help improve the remittance market in India. WhatsApp has already more than 200 million users and an important part of India’s GDP depends on remittances.
In the future, new stablecoins can be released allowing the market to be more stable, less volatile and easier to use for many individuals.