Japanese banks test blockchain technology using virtual currency.
Several Japanese banks are reportedly willing to test national money transfers using digital coins on a blockchain as a low-cost alternative to traditional money transfers.
According to a report released on Thursday by Nikkei, Japan’s most prominent financial publication, a group of major Japanese banks will test to determine whether a blockchain platform with digital currency could be a viable alternative to the current national clearing platform ‘Zengin’. Operated by the Japanese Association of Bankers, the Zengin System that promotes national monetary transfers in Japan. The traditional restrictive system typically offers money transfers between 8:30 AM and 3:30 PM in the country.
The banks are part of a consortium of Japanese banks led by SBI Holdings and SBI Ripple Asia, which groups more than 50 members of the payment consortium. However, the report reveals that only a handful of banks are participating in the test using virtual currencies, of which Ripple XRP is a contender.
As it is known, the Mizuho Financial Group, one of the three “megabancos” of Japan; Resona Bank, which belongs to the fifth largest banking group in Japan and; The Bank of Yokohama, Japan’s largest regional bank, are some of the banks that were revealed to participate in the test.
This test will send local money transfers using Blockchain. Fundamentally, the test will help banks determine whether a currency-based currency blockchain platform would allow real-time 24 × 7 national funds transfers at reduced costs to banks.
Ripple’s XRP digital currency token could be used with its claim to handle transactions up to 200 times compared to that of the bitcoin blockchain string.
The report also suggests that the transfer of funds through a blockchain in digital currency would cost a tenth of the costs incurred by banks using the traditional Zengin system. The benefits of instant money transfers and transparency will also be favorable to bank users if they are deployed commercially.
Apart from using Ripple, the banking group is also considering creating a new virtual currency used exclusively by participating financial institutions for testing. Details of any other digital currency under consideration are currently scarce.
The report also reveals that the group is considering the digital currency-based currency blockchain platform for international fund transfers to compete with Swift at significantly reduced costs. The threat of the irruption of financial technology has prompted Swift to unveil its own blockchain-based platform, based on Hyperledger Fabric, a solution developed by open source blockchain consortium Linux Foundaiton.
Meanwhile, the Japan Bankers Association, which represents and works on behalf of all domestic and foreign banks, banking companies and associations of bankers with presence in Japan, have already submitted plans to test their own blockchain for money transfers in Japan. Territory of Japan.
Recent developments in bitcoin space, where cryptography is now officially recognized as a legal payment method since its approval in April of this year, will push Japan to become one of the first countries in the world towards a Radical adoption of bitcoin and blockchain technology. Up to 260,000 Japanese stores or shops could be accepting bitcoin soon this summer, while Japan’s national payment system could soon be boosted by blockchain technology using digital coins.
In summary, it is possible to perceive firsthand how countries that, through their authorities and through clear policies, can use a technology that, because of its potentiality and scalability, can help the financial industry to jump to the provision of a quality service And low cost for its users, it is time to innovate and create new alternatives with blockchain and bitcoin technology.
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