Mizuho Financial Group, which originated in Japan, plans to launch a digital currency to be used for remittances and payments in March. This was according to reports from Asian media outlet Nikkei.
The article states that the retails shops that will accept the token as compensation will pay lower fees than those charged for credit card costs. Users will be able to transfer funds to and from their digital wallets, bank accounts, or other users for free.
Moreover, about 60 regional banks were brought on board by the group to promote cashless payments. The regional banks will then be able to provide the service under a common name, but is not yet established as of the moment.
The use of the currency will be through a dedicated smartphone application and payments will be done through QR codes. The value of the token will be at 1 yen (1cent) per unit, pegged to have a fixed value with the Japanese yen.
The digital currency is the result of the development of J-Coin which was announced by Mizuho in September of 2017.
Also in 2017, the public banking holding company, Mizuho Financial Group, reported 1.45 trillion yen of revenue which is equivalent to over $13 billion.
Meanwhile, Mitsubishi UFJ Financial Group (MUFG), the largest bank in Japan, will also be launching its own digital currency tagged as the MUFG coin.
With these developments in Japan, the country’s Financial Services Agency is legislating to place cryptocurrencies into a dedicated legal category called “crypto-assets.” This move aims to provide regulatory clarity and prevent any confusion with legal tender.