Banks are now coming to recognise the various ways in which they can benefit from improving the efficiency of their operations by implementing cryptocurrencies, and more specifically stablecoins.
Top Japanese banks pilot stablecoins
Three top Japanese banks (Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank) have begun to experiment with a pilot of stablecoins on a blockchain
According to a press release on Thursday, the banks are going to use infrastructure developed by GU Technologies on the Japan Open Chain, which is a fully EVM-compatible blockchain that is also compliant with Japanese law.
Three Japanese banks will test stablecoins on an Ethereum-compatible blockchain.
The blockchain in question is the Japan Open Chain, which can record over 1,000 transactions per second.https://t.co/WDJlPPYz9e
— Michael Branch (@Michael63140627) March 2, 2023
Stablecoins could dramatically improve fintech
Over the course of the last few decades there has been very little tangible innovation in the space of financial technology, and stablecoins are one of the areas where it can be dramatically improved, since one has the opportunity to make payments to anyone in the world without paying extortionate fees with huge waiting times for transfers to clear.
Moreover, they are highly popular with central banks, particularly in the US, since it means that they find it easier to find someone to buy their national debt – the reason that Circle, for example, is so profitable is because USDC is backed by US treasury bills which earn a yield for the company.
Stablecoins are also popular with organisations such as the World Economic Forum thanks to the fact that they are largely centrally controlled and a small number of individuals can choose whether or not holders are able to transfer their assets. As such, they make perfect pilots for the WEF’s plans to help roll out CBDCs by the year 2030.
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