Cryptocurrencies supported by Japanese domestic banks will encourage its mass-scale adoption

Of& nbspRishma Banerjee

While tradition and modern technology are thriving side by side in Japan, the same model is reflected in the country's cryptocurrency ecosystem. It ranks as one of the best crypto-friendly nations on Earth, with favorable and forward-looking cryptocurrency regulations. Bitcoin was declared legal in 2017 and at some point, the Japanese yen dominated the Bitcoin business. The Japanese financial services agency (FSA) also received 190 license applications for the exchange of cryptocurrencies. Despite these figures, Japan continues to be a company based primarily on cash, being cash dependent much more than other developed countries. The Japanese central bank, Bank of Japan, does not see the need to issue a digital currency.

However, many Japanese banks are now moving forward with their digital currencies.

• One of the largest financial institutions in the world, the Mizuho Financial Group, will publish its digital currency under the J-Coin Project. The digital currency will be (pegged) 1: 1 for the Japanese yen to reduce volatility and the fee payable by the shops to the credit card companies will be kept low. Mizuho also hopes in the future that J-Coin can be used for salary payments and also to collaborate with Alipay, an online payment platform that uses QR codes, to allow foreign visitors to easily make payments in Japan.
• The banks are planning to launch the new digital currency before the 2020 Olympics in Tokyo. (Financial Times)
• MUFG is the largest financial company in Japan and the fifth largest bank in the world, with $ 2.7 trillion of assets under management. The MUFG currency will be anchored 1: 1 to the Japanese yen and the company intends to apply it to a variety of daily financial needs, such as withdrawals and deposits for transactions and payments.
• In August 2007, the Japanese Fisco Ltd., a large financial services and financial information company, issued Bitcoin bonds. The bonds have an annual interest rate of 3% and return Bitcoin when it matures.

Japan is not alone when it comes to banks that launch digital currencies. The phenomenon has been observed all over the world, with several local and central banks that pilot or take into account the issue of their own digital tokens, including Russia, England, Thailand, Venezuela, Norway, Sweden, the Bahamas and Lithuania, to name a few. Reportedly, HSBC, Barclays, UBS and Santander are creating a "money for universal settlements" that would make trade between organizations more efficient. The coin is inspired by today's digital currencies.

But the application of digital currencies supported by the bank becomes particularly interesting in a nation that is largely dependent on cash such as Japan, with the potential to persuade people to adopt a non-traditional, less familiar, but cheaper and more efficient payment order.

Rishma Banerjee

Rishma is currently pursuing a degree in International Relations and has a special place in her life to sift through all sorts of random curios, thank you very much.