Domino Effect Of The Digital Economy: Japan’s Mizuho Financial Group o Launch Stablecoin for Payments
Mizuho Financial Group To Launch Stablecoin For Payments
Local financial newspaper Nikkei Asian Review reported that the firm in association with about 60 other financial institutions – which together hosts the user accounts of about 56 million people – will link existing bank accounts with digital cryptocurrency wallets directly.
Mizuho Financial Group is a public bank that declared over 1.8 trillion dollars in total assets as of the 31st of December 2018.
The currency will be managed by J-Coin Pay – a dedicated mobile app that uses QR codes at checkout to complete retail payments. According to Nikkei, the currency will be a digital stablecoin set at a price of 1 yen per unit, and transfers between bank accounts and J-Coin wallets will be free.
The CEO of Mizuho, Tatsufumi Sakai told reporters that
“The arrival of all these new entrants [into the digital payments space] is eroding the common-sense notion that payment services are provided by financial institutions.”
Japan has other payment innovators such as e-commerce giant Rakuten and chat app provider LinePay, which has also launched its own cryptocurrency and in-house blockchain.
According to Nikkei, potential J-Coin wallet users will not be obligated to undergo credit checks and the service will be open to users below the age of 18. The wallets will also serve a flexible variety of payments and remittance services than conventional bank accounts — with options for colleagues to share bills or for family members to transfer stipend.
In a bid to establish the platform with other retail industry players, Mizuho is currently in talks with convenience store FamilyMart, electronics retailer Bic Camera as well as transport company East Japan Railway with the aim of inculcating a minimum of 300,000 stores and sign up at least 6.5 million users in few years
Despite the bank’s large user base and its 60-member alliance, its target user outreach still falls short of LinePay’s existing 79 million Japanese users. Moreover, LinePay already has a support base of about 1.3 million stores.
Consequently, Mizuho is further pursuing a partnership plan with Alipay – Alibaba’s payment system – to assist J-Coin Pay to gain a partnership with stores. It also plans to lower its transaction fees for merchants than credit card services, which typically ranges between 2 to 5 percent.
Although Mizuho first announced its digital currency plans in December 2018, another Japanese banking firm – Mitsubishi UFJ Financial group unveiled its plans to launch a yen-domiciled stablecoin named MUFG coin. It also plans to launch blockchain powered payments systems by 2021 with Akamai – A United State content delivery network
Mizuho Financial Group is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan. With a revenue base of about 1.45 trillion Japanese yen, and a workforce of 56,375 it manages and engages in ancillary operations related to the management of its legally–owned subsidiaries as defined by the Japanese Banking Act.
In addition to streamlining group, management functions its activities include, creating partnerships among diverse business spheres and capabilities, as well as leveraging the defining strengths and characteristics of the Mizuho group.