Mizuho Financial Reportedly Planning Yen-Pegged Stablecoin in 2019

[Ozark]

Despite the lower trading level in Japan, the second-largest bank in the country is considering the launch of a yen-pegged digital coin.

Mizuho Financial Group, the second-largest bank in Japan, plans to introduce a yen-pegged stablecoin, which could be used for payments through a mobile app, Nikkei reported without specifying the source of its information.

The stablecoin will be tailored to the Japanese market and is expected in March 2019, according to the news provider. It will be available through local banks and a mobile app and will be accepted in shops. Stablecoins have the advantage of a less volatile price, fluctuations being one of the factors that have prevented crypto coins from widespread adoption.

The other major advantage of the new coin is that users would not be charged fees for transfers between their bank account and the digital asset. Payments would also be free, Nikkei said.

Previously, Japanese conglomerate GMO Internet has indicated readiness to release a stablecoin. It is unknown how that plan is going, but GMO is shrinking its crypto-related department after recognizing unexpected losses on its mining business.

In the crypto coin ecosystem, stablecoins are predominantly pegged to the US dollar to reflect the intuitive trading price, which is dollar-denominated. Coins linked to the Chinese yuan are also popular but are mostly used for exchange trading. Euro-pegged coins are more or less inactive.

In the past, Japanese traders boosted Bitcoin transactions, making up around 60% of all volumes during peak times. This type of speculation has now slowed down to a trickle, and currently, only 10% of all BTC activity is against the Japanese yen.

Japan was also one of the most liberal destinations for crypto trading and an early driver of digital coin adoption. However, a series of hacks that affected leading exchanges such as Coincheck and Zaif coupled with the crash in BTC prices during the bear market made both investors and regulators more cautious.

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