Japanese banks plan to introduce a digital currency that will be available at the 2020 Tokyo Olympics. In these plans of the banks, the Chinese Alibaba's mobile phone payment service at the last time is motivated to respond to the Alipay service.
The banks headed by Mizuho and Japan Post Bank have been supported by the Bank of Japan and the financial regulator for the digital currency named J Coin. J Coin will be used for money transfers and payments over smartphones.
The J Coin, which can be used with smart phone applications and QR codes in stores, will be available in the year. While services related to currency are free, banks will benefit from the collection of data on consumers' consumption behaviors.
In addition, the MUFG is developing a monetary unit named MUFG Coin based on blockchain. It is also a matter of debate whether MUFG Coin will be included in J Coin developed by Japanese banks.
