Mizuho Financial Group (MHFG), a highly-reputed Japanese financial institution offering clients a vast array of financial services including banking, asset management and more, has announced it would launch a yen-pegged stablecoin called J-Coin.
The product offer clients a cost-efficient and faster way to make payments, reports the Nikkei Asian Review on February 21, 2019.
Mizuho Unveil J-Coin to Fight Competitors
Per sources close to the matter, Japanese banking giants Mizuho Financial Group has joined forces with about 60 other financial institutions to integrate the J-Coin into their operations. The move will position Mizuho to remain competitive in a world where cashless payments powered by distributed ledger technology (DLT) is fast becoming a norm.
Determined to hold its own against firms like Line and Rakuten which are already giving users a whole new experience in the world of cashless payments, MHFG in collaboration with the other banks, will make the new J-Coin Pay platform available to 56 million bank account holders across Japan.
Commenting on the latest development, CEO of Mizuho, Tatsufumi Sakai reiterated that the integration of cashless payment options by some forward-thinking firms into their processes has successfully eroded the common-sense notion that provision of innovative payment services is solely the duties of financial institutions.
Fixed at a one-to-one ratio with the Japanese Yen, the J-Coin stablecoin allows clients of Mizuho as well as other participating banks across Japan to pay in a frictionless way by simply scanning a QR code at checkout via the J-Coin Pay mobile app.
The firm also claims that users can carry out zero-fee money transfers straight from their J-Coin wallets to a bank account.
Mizuho hinted that the J-Coin Pay system will be available to users who are less than 18 years of age and interested users will not pass through any form of know-your-customer (KYC) procedures whatsoever.
Importantly, Mizuho claims that its J-Coin Pay platform will also be able to handle a vast array of local remittances and other payments just like it’s competitor, Line Pay.
To promote massive adoption of its new stablecoin, Mizuho has reportedly said it plans to offer minimal transaction fees of less than two percent to participating stores, and it also plans to collaborate with Alipay.
At current, Mizuho says some stores have already expressed interest in adopting J-Coin pay, including Bic Camera, FamilyMart, and more.