Japan Plans its Own National Digital Currency Ahead of 2020 Games
- J COIN will help the Japan reduce its dependency on cash.
As per reports in the Financial Times, Japan is planning to launch its own national digital currency, J COIN, in time for the 2020 Tokyo Olympic games. The announcement comes against the backdrop of Alibaba's Alipay service being launched in the country, which is seen as a threat. Japan is a heavily cash-dependent economy and wants to change that over time.
The launch of the digital currency will be planned by a consortium of banks led by Mizuho Financial Group and Japan Post Bank. Both banks have secured support from the country's central bank and financial regulator. The new digital currency is envisaged for use by the general public for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and money transfers through smartphones.
The J COIN will be converted into yen on a one-to-one basis through a smartphone app, and scannable QR codes. The banks will benefit from the huge amounts of data it will collect on the spending patterns of individuals, and the economy is estimated to get a boost of more than ¥10 billion ($90 million) by eliminating the handling and settlement costs of physical currencies.
In an interview with the FT, Yasuhiro Sato, President and CEO of Mizuho Financial Group, 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,” He refrained from divulging details of the J COIN project when asked about the issues and concepts.
Japan plans to showcase its Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term capabilities before the world at the 2020 Olympic Games when lots of tourists are expected to visit the country. Several European countries are moving towards a cashless society after the success of the digital payment structure. Cash payments are now in the minority in Britain, and since 2011 Sweden has reported a 27 percent decline in physical cash circulation.
As per reports in the Financial Times, Japan is planning to launch its own national digital currency, J COIN, in time for the 2020 Tokyo Olympic games. The announcement comes against the backdrop of Alibaba's Alipay service being launched in the country, which is seen as a threat. Japan is a heavily cash-dependent economy and wants to change that over time.
The launch of the digital currency will be planned by a consortium of banks led by Mizuho Financial Group and Japan Post Bank. Both banks have secured support from the country's central bank and financial regulator. The new digital currency is envisaged for use by the general public for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and money transfers through smartphones.
The J COIN will be converted into yen on a one-to-one basis through a smartphone app, and scannable QR codes. The banks will benefit from the huge amounts of data it will collect on the spending patterns of individuals, and the economy is estimated to get a boost of more than ¥10 billion ($90 million) by eliminating the handling and settlement costs of physical currencies.
In an interview with the FT, Yasuhiro Sato, President and CEO of Mizuho Financial Group, 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,” He refrained from divulging details of the J COIN project when asked about the issues and concepts.
Japan plans to showcase its Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term capabilities before the world at the 2020 Olympic Games when lots of tourists are expected to visit the country. Several European countries are moving towards a cashless society after the success of the digital payment structure. Cash payments are now in the minority in Britain, and since 2011 Sweden has reported a 27 percent decline in physical cash circulation.