Japanese banks attempt to create a cashless economy by developing their own Crypto Currency
Japanese banks are looking to create their own Crypto-Currency, in an attempt to convert consumers to a cashless economy. The coin is in its early stages of development and is known as J-coin. "The project is in the early stages, and we have just held study meetings with other institutions," a spokeman from Mizuho Financial Group told CNBC.
On Tuesday the Financial Times stated that J-coin would launch before the Tokyo Olympics in 2020 and would involve a consortium of banks including Japan Post Bank. However, according to Mizuho Financial Group the plans haven't been approved by Japanese regulation.
The currency is planned to track the Yen, with its main function to be speeding up mobile payments and transfers via blockchain technology. Payments are to be made through a mobile app.
Mizuho have a keen interest in the crypto currency market due to its revolutionary blockchain technology. Blockchain technology has been tipped to evolve the global banking space and it's processes. With a ledger system that tracks and records key information automatically everytime creating an E-audit which can be traced all the way from the source.
The ability to automatically track transfer and record the movement of currency can evolve the way we use money. Faster payments means more efficient transactions with lower fees. Automation means much reduced costs in many senses, one of most important is the autonomy of transaction recording. In an ever more regulated banking space the world's banks need to be complaint with regulators demands for recording of transaction details. This could save banks billions per year, cutting time and man power needed to do this to near zero.
Mizuho recently made their first financial blockchain transaction by sending private confidential information with out any interception to Australia. With documentation also being sent via the blockchain.
Japan often the front runners of new technology have legalised the use of Bitcoin as a form of payment in an attempt to create a cashless economy. Shops now accept Bitcoin as legal tender, even more amazingly you can even pay your taxes on the blockchain. Many large companies have also started trading in Bitcoin in Japan.
The question is how long will it be before other countries follow in their footsteps?
