In Japan, financial life is slowly transitioning into a cashless society, with more people using mobile payment systems than ever before. In a bid to remain ahead of the curve, Mizuho Financial Group (MFG) have teamed up with 60 other financial institutions in Japan to create and launch the J-coin – a stablecoin pegged to the Japanese Yen. Powered by Distributed Ledger Technology (DLT), the J-coin allows MFG to remain competitive in a cashless environment.
Not the Only Yen Stablecoin on the Block
J-coin isn’t alone in being the only Yen-pegged stablecoin in Japan. Earlier this year, Crypto Garage was given the regulatory green light to create the world’s first yen-pegged stablecoin. For the project, Crypto Garage teamed up with blockchain startup Blockstream. Together the two created a regulated trading environment for the new stablecoin, but failed to sign up businesses to the platform and create a real use case. For now, Crypto Garage’s stablecoin is only useful for Japanese crypto traders rather than shoppers.
Say Hello to J-Coin Pay
While it would have sounded better if it was simply called J-Pay, J-Coin Pay allows holders to complete transactions by simply scanning a QR code generated by a merchant. The J-Coin wallet is loaded onto a mobile phone and users can then use the app in thousands of stores around the country to transact – just as if it was a true fiat currency. Texas is currently mulling over a similar idea, as it looks to make USD-pegged stablecoins accepted tender in the state.
Could Japan Be About to Launch a Bitcoin ETF?
When it comes to ETFs, the crypto markets are frothing at the mouth in hopes of one launching. As a crypto pioneer, the Japan Financial Services Authority (JFSA) has started looking into the prospect of launching such a financial instrument. If given the green light, it would open up a whole new realm of Bitcoin investors, helping Bitcoin prices to soar like never before. While it doesn’t look set to make an announcement just yet, we could see some progress towards the tail end of 2019 and early in 2020.
Stablecoins are great news for crypto traders, and seemingly so for people who want to spend cryptos too. By giving people an easy way of converting crypto into a stable currency without cashing out from the crypto world, traders can quickly protect their investments from adverse market movements. J-Coin looks set to become the biggest and best stablecoin in Japan, so watch out for it as it launches next month.