Japan’s banking giant Mizuho Financial Group will launch a yen-backed stablecoin for payments and remittance services on March 1. According to a February 21 report from Nikkei Asian Review, the project will be a result of a partnership of around 60 counterpart financial institutions.
Dubbed the “J-Coin,” Mizuho’s digital currency platform will reportedly directly link existing bank accounts with digital wallets, which could reach as many as 56 million user accounts.
A dedicated mobile app called J-Coin Pay will be used for managing the coin. The app will reportedly use QR codes at checkout to complete retail payments. Sources from Mizuho told Nikkei that the currency will be a digital stablecoin fixed at a price of 1 yen per unit, which is around $0.01. Users will be able to transfer the cryptocurrency between bank accounts and J-Coin wallets without having to pay a fee.
“The arrival of all these new entrants is eroding the common-sense notion that payment services are provided by financial institutions,” Mizuho CEO Tatsufumi Sakai said.
The company wanted to create a service that caters to “the needs of a wide range of ages,” which is why it will be open to users younger than 18. Signing up for J-Coin Pay will not require a screening as with credit cards.