Japan’s Financial Consortium, Mizuho set to launch yen-pegged stablecoin in 2019

One of Japan’s Financial Consortium is has expressed intentions to launch a digital token. The crypto asset will be a stablecoin that will be backed by reserves of the country’s currency, the yen.

Stablecoins were introduced to ensure that investors can avoid the volatility of the market and a peace of mind knowing that their funds will remain relatively stable. The swings in the crypto market makes digital assets risky store of value. The pegging to the fiat currencies gives the stablecoins stability. Fiat currencies have a tendency to remain stable over a period of time as opposed to the sudden swings in the crypto market. Every stablecoin that exists within the network has the same value of the fiat currency used and has the same value of the fiat in reserve.

The Financial Consortium hopes to use the coin for all the firm’s transfers taking advantage of the recently developed mobile app. Currently, the asset has not been given a name. Consequently, the Financial Group will distribute the token to several banks in the region as well as the retail stores for payment and transfer testing. It is expected that the banks and the retailers will have access to similar services offered by credit cards while using the stablecoin.

It has been said that there will not be any transaction fees for both the customers and the businesses who will sign up to test the coin. Moreover, transfers to from their bank accounts will also be exempted from the fees.

The company said that it has been interested in digital assets for a number of years now. Besides it is a part of the J-Coin Project. A Japan-based project that is made up of various banks and enjoys the support of the regulator, the Financial Services Agency (FSA) and even the central bank.

The Mizuho stablecoin is likely to hit the market in March 2019 and will be convertible to the yen on a ratio of 1:1.