The push of the government of Japan towards a cashless society is quite evident from a host of steps that it has taken in recent times. The latest one in this series is the launch of J-Coin Pay – a smartphone digital wallet. This digital wallet makes use of QR codes in order to provide payment services to users. However, it is important to note that this digital wallet has nothing to do with cryptocurrency and blockchain technology. Recently, the banking major JP Morgan group has announced the development of JPM Coin which hasn’t gone down well with the various crypto enthusiasts as they were calling this move just pretension. With J-Coin Pay, it would be interesting to witness how the crypto industry will react to this particular development.
J-Coin Pay Mobile Wallet
Coming back to the J-Coin Pay, this wallet application is available for all the citizens of Japan from the 1st of March 2019. The application has got the support of sixty Japanese banks including Mizuho Bank and in a way; it is a holistic solution for all the banking needs of citizens including receiving and sending the money without any kind of unnecessary hassle. All the processes related to conventional banking can be carried out on this mobile wallet which is indeed a big convenience for the prospective users. The operating mechanism is quite simple. Users first need to transfer the money from their bank account to the mobile wallet, and then they can easily transfer the money to other accounts using the QR codes and mobile numbers. What makes this process even more convenient for the users is that they have to pay no fee at all to carry out the transaction.
Absence of Blockchain Technology
Undoubtedly, this new mobile wallet application is very convenient; however, experts are asking questions about the absence of blockchain technology in this particular development. This is especially surprising given the fact that Japan is long rumored to be working on to come out with its digital currency pegged to fiat currency Yen. Many speculated that the launch of J-coin is nothing but a step towards Japan’s cryptocurrency but now with the application coming out in the open with no traces of either crypto or blockchain; the alternative route taken by Japanese government seems to have disheartened the crypto advocates. In real terms, the launch of J-Coin Pay is nothing but an official attempt to move away from the paper currency. The association of the wallet with the businesses, restaurants, shops, and other financial institutions will help the government to realize its vision of a cashless economy. This also means that anybody can use either deposit, withdrawal, or send money to anyone at any point in time without any kind of constraint. Japan has conceptualized a vision to achieve 40% cashless transactions in the country by the year 2025. An official statement regarding the launch of J-Coin Pay from the government said that the Mizuho Bank, along with other participating banks and financial institutions, will work towards realizing the goal of the government which is to achieve a cashless society.
Crypto analysts are now hoping that Rakuten (Japan’s Amazon) will launch the crypto-coin in the country. The reason behind this expectation is one of the clauses in the report of company’s February earnings where it hinted that the next update of its payment application would include all the available payment solutions into one specific platform. This has given the fodder to the speculations that the giant in e-commerce space would be releasing its cryptocurrency soon. Just so you know, one of the well-known crypto exchanges in Japan, Everybody’s Bitcoin is owned by Rakuten. Rakuten started accepting Bitcoin for the payment as early as in 2015. The chief executive officer of the company, Hiroshi Mikitani announced in March last year that the company would be releasing its cryptocurrency; however, since then there hasn’t been any development we have heard thus far.