According to Japanese news outlet Nikkie, Mizuho is planning a launch a proprietary digital currency pegged to Yen that can be used in shopping and remitted at no cost. Retail shops will be charged much lesser fees than credit cards for using the currency.
The bank had previously announced the “J-coin” initiative along with Yucho bank in 2017. Mizuho has partnered with 60 regional banks to spread cashless settlement, the project is said to the first of its kind operated by the Japanese megabank.
With the stable coin, the bank aims to increase cashless payments. Users will be able to transfer funds using QR codes on a dedicated smartphone app. The bank won’t be charging any fees for banks transfers or sending funds to others. Bank transfers from Retails shops will also be free and instant.
The stable coin which is yet to be named will be made available by all the participating banks. Using Blockchain technology the bank aims to promote a cashless society in Japan with lower fees and faster settlement time.
Mizuho’s rival Mitsubishi UFJ Financial Group is also testing high-speed settlement with Blockchain technology and is set to launch experiments in 2019. MUFG also partnered with Ripple for cross-border payment service between Japan and Brazil.