• Three Japanese banks are starting a trial to issue fully compliant stablecoins on an ultra-fast but largely centralized blockchain known as Japan Open Chain.
• The network uses a consensus algorithm called Proof of Authority and can process 1,000 transactions per second.
• It is compatible with the Ethereum ecosystem and wallet MetaMask, potentially enabling Japanese financial institutions to process global transactions.
Japanese Banks Launch Stablecoin Trial
Three Japanese banks – Minna no Bank, Tokyo Kiraboshi Financial Group, and Shikoku Bank – are launching a trial for issuing fully compliant stablecoins on an ultra-fast but largely centralized blockchain known as the Japan Open Chain.
The Japan Open Chain has six validator nodes at present and is aiming to increase this number to 21 companies in the future. It uses a consensus algorithm called Proof of Authority (PoA), which enables faster transaction speeds than more widely used algorithms like PoW or PoS, though comes at the expense of decentralization.
Compatibility with Ethereum Ecosystem
The chain is also compatible with the Ethereum ecosystem, including its popular wallet MetaMask, making it easily available for many regular crypto users. This could provide great business opportunities for Japanese financial institutions by allowing them to process transactions made all around the world.
Benefits Of Stablecoins
Stablecoins will enable easier access to money across borders, as well as providing greater security against price fluctuations or inflation compared to traditional fiat currencies. They will also make it easier for businesses and investors to track their money flows without relying on third parties or multiple currency exchanges.
The issuing of stablecoins on the Japan Open Chain promises numerous benefits for Japanese financial institutions and could open up new possibilities for global transactions in the near future.