Japanese Banks Aims to Experience New Alternatives with Blockchain Digital Currencies
Japanese banks have formed a consortium to experiment with money transfers using digital currencies that aims to develop the most convenient and least expensive alternatives to send money.
The payment consortium is led by SBI Holdings and SBI Ripple Asia and has 56 members including the recent additions of MUFG unit of Tokyo Bank-Mitsubishi UFJ and Shiga Bank.
The next test using digital currency is designed to examine the time, cost, and convenience of money transfers. In addition, it is considering the creation of a new virtual currency that can only be used by the financial institutions involved in the test.
The main objective of the test is to determine if a system based on a virtual currency can be used to provide 24-hour fund transfer services and can reduce costs for banks. The current traditional model includes banks that use a system administered by the Japanese Bankers Association for national money transfers.
The test will see the participation of only some members of the consortium such as Mizuho Financial Group, Resona Holdings’ Resona Bank and Concordia Financial Group of Yokohama Bank.
Money transfers will use blockchain technology, but the actual type of system to be used is still to be decided.
The consortium has also planned to test international money transfers based on the digital currency and hopes that the potential of the block chain can reduce costs compared to SWIFT, the global payment network.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.