Japanese internet giant GMO will issue JPY-pegged stablecoin for circulation in Asia

Japanese internet giant announced plans to launch yen-based stable coin to target international remittances. The company jumped the cryptocurrency bandwagon in May 2017 by acquiring the Japanese cryptocurrency exchange, now it moves on, to take a firm position in the Japanese crypto market by issuing its own yen-pegged coin GMO Japanese Yen (GJY).

"GMO Internet positions the cryptocurrency business as its strategic business sector and is already engaged in cryptocurrency exchange business and cryptocurrency mining business. Starting with the launch of the new “Yen-pegged currency,” we will now support borderless cryptocurrency transactions," the company said in the official press release.

GMO aims to promote and enhance the cryptocurrency market liquidity by reducing price volatility that hampers real-life use cases of digital assets as a means of payment. Stablecoins are considered less volatile alternatives, whose value is backed by legal currency or any other asset. The company admits that currently there are 57 stablecoins in the market, though only 23 of them are already in circulation. Tether is considered to be the leader of the segment with the highest transaction volume.

The new stablecoin will be fiat-collateralized and it is expected to hit the market in 2019 for the circulation in the Asian region.

“We have banks and trust licenses in Japan, so we will issue (GJY) in Asia, but we can store assets in Japan as well,” GMO founder and president Masatoshi Kumagaii explained in the interview with Cointelegraph Japan.

According to GMO, stablecoins can be used as a tool against hyperinflation and as an alternative in countries with unreliable local currency once a number of issues as true decentralization are overcome.

"Of all the stablecoins, we believe the “Yen-pegged currency” backed by the Japanese yen has high potential to be an ideal currency with high reliability as well as low remittance fee and fast transaction speed which are distinct advantages of cryptocurrencies. GMO Internet will support reliable borderless transactions by launching “Yen-pegged currency.”