About The J-Coin ICO
A consortium of Japanese banks are preparing to launch a new national digital currency called J-Coin. The currency is designed to wean citizens off of cash.
The story was originally reported by the Financial Times. The FT says that the consortium is led by Mizuho Financial Group and Japan Post Bank. Together, the banks plan to launch the new digital currency before the 2020 Olympics in Tokyo.
The project also reportedly has the support of Japan’s central bank and financial regulators. If successful, J-Coins could be used to pay for goods and services over a smartphone.
Japan is one of the most cash-dependent nations in the world. Cash represents 70% of all transactions by value in Japan. This cash dependency leads to heavy costs for banks and governments. Banks must pay to handle, transport, and audit large amounts of cash, while governments risk losing tax revenue to undocumented cash transactions.
J-Coin will be designed to be more convenient than cash and spendable over any smartphone. It’s expected to add up to $90 million USD to the economy.
How Will The J-Coin ICO Work?
The J-Coin would be exchangeable with the Japanese Yen at a rate of one-to-one.
Obviously, the world is quickly moving towards a cashless society. Several European economies have virtually eliminated cash already. In Sweden, cash use has declined by 27% since 2011 thanks to the rise of digital payments and cards. Denmark is seeking to introduce legislation allowing businesses – including shops, restaurants, gas stations, and clothing stores – to stop taking cash.
Meanwhile, the Bank of Korea has announced plans to create a cashless society by 2020. Cash also recently became the minority in the UK in terms of transaction volume.
Other Global Banks May Also Introduce A Digital Currency
The Japanese bank consortium mentioned above isn’t the only global banking group seeking to introduce its own digital currency.
HSBC, Barclays, UBS, and Santander are reportedly creating a “Universal Settlement Coin” that would make trade between the organizations more efficient. The coin is inspired by today’s digital currencies.
Stay tuned for more information about Japan’s unique J-Coin project as the coin continues to move forward in its development.