Japanese banks plan to introduce a digital currency ready for the 2020 Tokyo Olympics, reports the Financial Times.
A consortium of banks, led by Mizuho Financial Group and Japan Post Bank, has won support from the country’s central bank and financial regulator to launch the J Coin, an electronic currency 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.
Meanwhile, MUFG has been developing a blockchain-based alternative called the MUFG coin. However, there have been recent discussions between the top banks about the possibility of MUFG joining the J Coin initiative.
The J Coin is designed to wean the Japanese off their heavy dependency on cash, which accounts for 70 percent of all transactions by value.
The global banking establishment is setting up to track all transactions and the high use of cash in Japan is a big obstacle for them.
-RW
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