The banking giant from Japan, Mizuho Financial Group is in our blockchain news today after the announcement for the launch of their yen-pegged stablecoin for payment services that was reported by the local newspaper Nikkei Asian Review.
Mizuho Financial Group partnered with more than 60 counterpart financial institutions that all of them combined to host 56 million user accounts. The new stablecoin ‘’J-Coin’’ will work as a direct link for the existing bank accounts with the digital wallets.
The bank reported over $1.8 trillion in assets as of December 21, 2018. The stablecoin will be managed by a mobile app using a QR code that will help to complete the retail payments. Also, the stablecoin will be used as a digital stablecoin fixed at 1 yen per unit and the transfers to the wallet will be set to zero fees.
The CEO of Mizuho, Tatsufumi Sakai explained that:
“The arrival of all these new entrants [into the digital payments space] is eroding the common-sense notion that payment services are provided by financial institutions.”
The J-Coin wallet users won’t have to bother with credit checks and the services will be provided even for users under the age of 18. Mizuho is also in negotiations with multiple convenience stores such as FamilyMart, Bic Camera which is an electronic retailer and East Japan Railway transport company. It is expected for more than 300,000 stores to sign up which is about 6.5 million users.
Mizuho is also trying to partner with one of the largest online stores Alibaba’s Alipay that will potentially help J-Coin to gain even more attraction. Merchants will be eventually charged with lower transaction fees than the credit card services do.
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