Japan's Leading Bank Launches Stablecoins To Improve Payment Systems

Banks in Japan will use stablecoins. (Photo; Doc. FXStreet)

JAKARTA A number of leading banks in Japan, Tokyo Kiranoboshi Financial Group, The Shipoku Bank, and Minna no Bank, have announced the launch of their stablecoins to improve the payment system.

For your information alone, stablecoins are cryptocurrencies whose value remains stable and their price is tied to fiat currencies, such as Japanese yen. Stablecoins have been used around the world to send money quickly and cheaply.

In a press statement released on Thursday, the three banks stated plans to use the system developed by Web3 infrastructure company GU Technologies at the Japan Open Chain.

They hope to implement a payment system that meets legal requirements, as well as implement a stablecoin system that can popularize its use among companies and consumers.

This demonstration attempt will involve local governments and private companies. The announcement also confirms that each bank can issue its own stablecoin that can be used in Ethereum wallets like MetaMask, while complying with Japan's new funding settlement laws.

The three banks agree that the tested financial institution stablecoin issuance system will ensure asset support at the Japan Open Chain. This public blockchain, which is fully in accordance with Japanese law, is also fully compatible with the Ethereum blockchain.

Stablecoins have great potential in improving payment systems, and with the launch of stablecoins by three leading banks in Japan, it can be expected that stablecoin usage will become increasingly popular across the country.