Fake News: Japan Is Not Launching A Cryptocurrency With The Largest Bank

Many crypto news outlets have been reporting the fact that Japanese bank Mizuho, the island nation’s largest bank are launching a blockchain project. However, it has been said that these rumours are in fact fake.

In fact, J-Coin, as reported, has absolutely nothing to do with cryptocurrency or blockchain.

J-Coin Is Not A Digital Currency:

As reported by many publications, the J-Coin project is not a cryptocurrency but instead an initiative to modernise the Japanese economy. It is reported that roughly 4 out of 5 transactions in Japan take place with cash. This puts the country way behind the rest of the world when it comes to electronic payment adoption. Over in China, however, Tencent’s WePay, which is a QR-Code system which integrates a users bank account allowing instant payment for goods is a household form of payment. Also common is AliPay which boasts over 700 million users in China.

There are many factors which contribute to Japan’s low adoption rate of electronic payments. The country’s negative and low-interest rates are more than likely the cause for many Japanese citizens hoarding their cash. Japan also has one of the lowest crime rates on the planet, meaning many are comfortable with carrying cash.

An Effort To Encourage Electronic Payments:

The Japanese government wants to modernise its economy in preparation for the upcoming summer Olympics which is taking place in Tokyo next year and are currently pushing for banks and merchants to aid in this initiative.

But is the government issuing a yen-based stablecoin via the major banks of Japan? Not even close.

It often happens within the cryptocurrency space, enthusiasts will grab onto a small bit of speculative information and run with it. However, statements made by representatives of Mizhuho probably added fuel to this fake news fire. In one case, a Mizuho official told CNBC that a yen-pegged crypto platform was on the horizon. Naturally, when crypto and blockchain enthusiasts hear the word “digital currency platform” they think blockchain.

That being said, Mizuho never stated that it’s launching a blockchain platform or a stablecoin. The company merely stated that it would be creating a new digital payments network. The project is J-Coin, and it’s Japan’s answer to Apple Pay, Samsung Pay etc.

A stablecoin for Japan would be outstanding, but perhaps the nation first needs to address their issue with traditional electronic payments?