On March 1st, Mizuho Financial Group – a Japanese banking Giant – will release their own stablecoin. This can be considered a breakthrough in blockchain adaption, as the past half year a large amount of stablecoins were released. However, none of them are backed directly by a bank.
Mizuho Financial Group is teaming up with around sixty financial institutions to lever the combined 56 million accounts to adapt their cryptocurrency – dubbed J-Coin. The currency will be pegged to the Japanese yen for a 1:1 ratio and the transfers between the bank and the wallet are not going to be charged.
The Japanese bank is entering a heated market, as the chat app Line has their own cryptocurrency and is the go-to app for the Japanese. The e-commerce giant Rakuten is also a large player in payment innovation. The J-Coin wallet should act as a flexible paying system, where splitting bills should be as easy as counting one-two-three.
The bank is pursuing a partnership with the convenience store FamilyMart, electronic retailer Bic Camera and East Japan Railway. The aim is to have J-Coin Wallet accepted at over 300,000 stores and have a minimum of 6.5 million users. Mizuho also wants to have a partnership with Alipay to have a broader rate of acceptance. To win over merchants, it plans to charge lower transaction fees than credit card companies.