(27 September 2017 – Japan) A group of Japanese banks, led by Mizuho Financial Group and Japan Post Bank, has won support from the country’s central bank and financial regulator to launch a digital currency, named the J Coin, in time for the 2020 Olympic Games.
The electronic currency will pave the way to pay for goods and transfer money using smartphones.
The J Coin would be convertible into yen on a one-to-one basis, operating via a smartphone app and using QR codes to be scanned in stores. In return for providing the service for free, the banks would benefit by collecting more data on consumer spending patterns.
Speaking to the Financial Times, president and chief executive officer of Mizuho Financial Group, Yasuhiro Sato said, “I think this electronic money is quite ahead of [credit and debit] cards, because when you use the cards the shops pay a certain fee.”
Last year, the Bank of Tokyo (MUFG) confirmed that it is developing its own digital currency, MUFG Coin, which will be downloaded to smartphones and used for P2P funds transfers and for online shopping. Reports suggest the banks involved in developing the J Coin have discussed including MUFG.
The banks have privately estimated that the new system could add an extra ¥10 billion to the country’s economy by reducing the costs of handling physical notes and coins and cutting settlement fees for retailers and consumers.