The Japanese banking giant Mizuho Financial Group will launch stablecoin for payments and money transfers on March 1. This was reported today by the local newspaper Nikkei Asian Review.
Mizuho Financial Group is a public banking holding which, as of the end of 2018, owns $ 1.8 trillion of assets. Approximately 60 financial institutions have become partners of the bank, whose user base has 56 million accounts. Together they organized a digital platform, on which the stablecoin J-Coin is based. The platform will directly link a bank account with digital wallets.
It is reported that the currency will be managed through a special mobile application called J-Coin Pay. Using a QR code, the user will be able to make a retail payment. Stablecoin will be tied to the yen (1 token = 1 yen). Transfers between a bank account and a purse attached to it will pass without a fee.
Mizuho CEO Tatsufumi Sakai said that “because of the oversaturation of the digital payment market, users no longer understand that payment services are provided by financial institutions.” According to the publication Nikkei, in Japan there are already innovators in the field of digital payments. For example, titanium e-commerce Rakuten and developer of instant messengers Line, which launched their own cryptocurrency on their own blockchain.
Potential users of J-Coin will be exempted from the credit check procedure. J-Coin’s wallet will cover a wider range of payments and money transfer services than traditional bank accounts.
Mizuho is negotiating with the FamilyMart store, as well as with the electronic retailer Bic Camera and the transport company East Japan Railway. The bank wants at least 300,000 stores and at least 6.5 million users to become ecosystem participants over several years. Despite the huge user base of Mizuho and partners, the coverage of their target users still falls short of 79 million Line customers, whose payments are supported in millions of stores across the country.