Japanese Banks Launch Experimental Use of Stablecoins
Three Japanese banks have opted to take part in this initiative, which will leverage stablecoins on the Japan Open Chain, a platform that adheres to local regulations.
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GU Technologies, the developer of Japan Open Chain, is teaming up with Tokyo Kiraboshi Financial Group, Minna Bank, and The Shikoku Bank to conduct a demonstration experiment involving stablecoins. This will take place on the Japan Open Chain, which is a public blockchain platform designed for stability, speed, and regulatory compliance, and is compatible with Ethereum. The goal of the experiment is to show that each bank can issue stablecoins that are fully backed and legally compliant, and that can be transferred quickly, including to personal Ethereum wallets.
GU Technologies has announced that an updated law will go into effect in June, allowing banks to issue stablecoins that are pegged to any currency. This move is expected to simplify global payments and make it easier for individual users to pay for goods and services, trade tokenized securities, or use stablecoins as an alternative to traditional online payments.
In addition to these benefits, stablecoins can provide banks with other advantages, such as increased investment income, higher exchange revenues, and reduced costs associated with bank transfer systems. For users, stablecoins offer fast transfers, low fees, greater control and convenience in managing their funds, and unrestricted access to foreign currency payments. They also have the potential to be used actively in Web3 applications.
GU Technologies is actively working to promote the use of stablecoins in payments and is inviting interested companies to participate in the demonstration experiment.
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