A well-reputed bank in Japan, Mizuho along with 60 other banks, has launched a new digital wallet called J-Coin Pay. But contrary to all the news that has been flashing since 2017, J-Coin Pay won’t be using blockchain and cryptocurrency.
Mizuho’s new service will require the clients to filter the QR codes on the items using a smartphone and thereby deducting the amount pegged for the goods from the client’s J-Coin Pay wallet. The payment method resembles Alipay and WeChat, dominant payment platforms in China.
Japan has been the most cash-intensive economy in the world, and so, its government is aiming for electronic payment to be in full gear by the time of the 2020 Olympics in Tokyo. Digital payments have been part of Japan’s economy accounting for about 20% of transactions, and the government is aiming to double the percentage by 2025.
Mizuho spokesperson confirmed that J-Coin won’t be using blockchain and cryptocurrency in any form for its operation. This makes the reports going around from 2017 about the bank researching or planning a digital currency pegged by Japanese Yen seem moot, Quartz reported.
The name “J-Coin” considerably created the confusion as it sounds like a newfangled digital token. Mizuho’s statement about it describes it as a “digital currency platform.” A spokesperson that it would be pegged to the yen. The bank claims it had always planned to build a QR-code payment system rather than a standalone digital currency.
With or without blockchain, the world is catching up on digital transactions. Consumers in Japan have been transacting with electronic money since before the internet was invented. The greater use of electronic money would give the Bank of Japan more scope to stimulate the economy during the next slowdown. Mizuho’s J-Coin Pay is focusing on at least 300,000 stores that will be at least 6.5 million users within a few years, by tapping the broad base of account holders with member banks, as mentioned on BTC Wires.
There are still questions regarding privacy when it comes to digital money transaction. But, it makes sense for the governments to encourage digital transactions without the need to embrace blockchain and cryptocurrency.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]