Japanese bank has launched a pilot to test its own stablecoin pegged to Yuan
After Japan approved crypto self-regulation through Japan’s Virtual Currency Exchange Association (JVCEA), cryptocurrency market has been flourished with another announcement.
Taking advantage of the ruling that stablecoins are not considered cryptocurrencies, The First Bank of Toyama has launched a pilot project to test it own stablecoin, called the First Bank Coin (FBC). According to the bank’s statement, the stablecoin is pegged to the national currency, the Yuan, at 1:1 ratio, and is scheduled to become available to the public by October 2019.
During the pilot, employees of The First Bank of Toyama will be able to use FBC as a legitimate payment for products and services provided at the bank’s headquarters. Additionally, they would be also able to make purchases using FBC via a smartphone app.
The FBC coin is not the first launch of a stablecoin by a Japanese bank. Another major financial institution, Mitsubishi UFJ Financial Bank, piloted a stablecoin MUFG that allows its employees to purchase goods at an unnamed in-house convenience store. The bank’s employees need only to scan a product they need to buy using an MUFG coin mobile app, and the payment will be processed automatically. This pilot is currently in an advanced stage, and the MUFG will soon become available to the public.