A Japanese banking group got over 60 banks on board their idea to introduce a proprietary digital currency which can be used for payments and transferred at no cost.
The Mizuho Financial Group plans to introduce the currency as early as March 2019. The banking group wants to promote cashless payments and will offer significantly lower fees to retail shops using the currency.
A local English-language media outlet Nikkei reports that the transfer of funds between the bank account and the digital wallet will be free of charge. Transfers between clients will be free as well. To use the currency clients will need to download a dedicated smartphone app and use QR codes to initiate payments.
Other local banks will also be able to offer the service under the same name (which has not yet been announced). This will allow users to use the digital currency in all participating banks.
“It will become the first [project] of its kind operated by a Japanese megabank”
The new currency will be a stablecoin pegged to a yen at 1:1 rate, so its price will not fluctuate It is a result of a different project by Mizuho Financial Group, the J-Coin.
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