It is now apparent that global banking giants have realized the potential locked in cryptocurrency transfers and how much it can improve their business.
Barely a week after U.S banking mogul, JP Morgan Chase unveiled its cryptocurrency, reports from Japan reveal that we will soon welcome the second bank-backed cryptocurrency.
Tokyo-headquartered, Mizuho Financial Group is launching a cryptocurrency called J Coin to facilitate interbank and retail transfers in the remittances market.
The bank will rely on its strength and existing partnerships to promote the new cryptocurrency to the Japanese market in the next few years.
Facts About Mizuho's J-Coin
The cryptocurrency will be a stablecoin pegged 1:1 against the Japanese Yen.
It will be powered by a mobile application known as J-Coin Pay.
Potential users will not have to undergo any screening before onboarding the app.
People under the age of 18 can use JCoin to make and receive payments.
Unlike other payment options available to the Japanese market, J-Coin Pay users will have the opportunity to transfer their wallet balances to a bank account without paying any extra charge.
Mizuho has partnered with 60+ financial fellow banking institutions, with a total of 56 million accounts eligible to use the J-Coin Pay app.
J-Coin users will enjoy lower transactions fee that is more competitive than the traditional 2%-5% charged for debit card transactions.
Efforts are currently underway to convince major Japanese retail stores such as Alibaba, Family Mart, Bic Camera, and East Japan Railway to allow users to pay with J-Coin.
The cryptocurrency is expected to go live on March 1, 2019.
Mizuho’s entrance into the crypto industry via development of a stablecoin is not surprising given JP Morgan's recent debut and the increased adoption of these kinds of fiat-backed cryptocurrencies.
Stmarket.co even reported that social media giants Facebook are developing a stablecoin for money transfers on it's WhatsApp Messaging platform.
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