Mizuho bank started to experiment on blockchain technology in early 2017. The bank is one of the largest banks in Japan, and it is the foremost pro blockchain bank. The institution planned to disrupt the traditional method of banking. It started the process by completing a trade transaction and sending documents from Japan to Australia.
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This was an interesting event, and after about 15 months, the bank and sixty other banks are launching a payment platform for this same purpose. The processing platform aims to wane all customers of cash. The private digital platform is independent of public or private blockchain.
A collaboration of more than 60 banks
Mizuho led the consortium of banks. The company is a subsidiary of the Mizuho Financial Group with Koji Fujiwara at the helm of affairs. The information was made public in a press release by the company. Also, the coin will start off the J-pay wallet.
The press release stated,
“Mizuho Bank, Ltd. (President & CEO: Koji Fujiwara), a core subsidiary of Mizuho Financial Group, Inc. (President & CEO: Tatsufumi Sakai), will launch a new bank digital currency platform J–Coin Pay in March 2019, in cooperation with approximately 60 other financial institutions.”
How it works
Customers who wish to send and receive payments using their mobile devices can use a QR code to ease the process. Aside from the basic transfer method, other users can send funds from J-Pay wallets to their bank account at no extra cost. This transaction can be done anywhere and at any time.
The Japanese government is keen is becoming a cashless society. This launch also aligns with the objective of the government. Although, in a traditional sense, the country is cash intensive. It is lagging behind when it comes to digital payments unlike countries like China where WeChat and Alipay are used. This is a part of the large-scale overhaul that aims at increasing the use of digital payments. A rise from 20% to 40% is expected by the year 2025.
This service came at a good time when the country is getting ready for the Olympic games in 2020. It could go a long way to reduce frustrations and chaos. The wallet will be available for everyone in the country, even visitors.
QR code operators are in liaison with the banking consortium, and this makes it easier to transfer funds using smartphones.
This launch is a strategic move by the Bank of Japan in a bid to stimulate the economy. It comes thirty years after the Real Estate meltdown of the 80s and 90s. The country has a large aging population, and many people aren’t planning to take a digital leap. If the platform helps save businesses from the trouble that come with handling cash, there will be more room for improvement.
What this development means for Ripple
It isn’t clear yet what this means for the company, but it still has a bright future in other regions such as the US. Presently, Uphold XRP payments have increased and is still on the rise. In the end, the development is good for the entire crypto community. More adoption means stronger digital currencies.