Three largest Japanese banks to issue stablecoin pegged to yen and dollar

The three largest Japanese banks – MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank – will jointly issue a stablecoin. This is reported by UNN with reference to asia.nikkei.com.

Details

Stablecoins are digital payment instruments used on the Internet and pegged to fiat currencies, such as the US dollar.

As noted in the publication, these banks are standardizing technical specifications to enable use for intra-company and inter-company payments. The use of blockchain technology allows for low-cost settlements.

Initially, the focus will be on a stable currency denominated in Japanese Yen, with a dollar-denominated version planned for the future. The banks anticipate that their stable currency will be put into practical use this fiscal year, by March, after a proof-of-concept.

Recall

Earlier, UNN reported that Japan is experiencing the most acute labor crisis in modern history due to an aging population and low birth rates. This threatens the stability of all industries – from transport to defense.