According to Nikkei Asia, a local news source, Japanese trading giant Mitsui is proposing to introduce a cryptocurrency backed by gold. Mitsui’s new digital currency, ZipangCoin (ZPG), will be offered to ordinary investors through cryptocurrency exchanges as early as February.
Mitsui from the London Metal Exchange will connect the stablecoin to gold prices at yen-denominated pricing, with one ZPG equaling one gramme of gold and Sumitomo Mitsui Banking guaranteeing it.
According to the storey, Mitsui’s private crypto exchange will initially provide the new gold stablecoin, which will afterwards be made available on other exchanges. The trading firm partnered with Seven Bank Japan to develop a crypto trading platform, which was registered with the Kanto Local Finance Bureau and approved by Japan’s Financial Services Agency (FSA).
The new gold-based digital money aims to provide new ways to manage financial risk and inflation. Apart from new investment prospects, Mitsui is said to be planning to allow ZPG to be used for payments at stores and supermarkets via cellphones, as well as for bill payments.
Mitsui isn’t the only Japanese firm working on stablecoins. A group of 74 organizations, including Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial, launched a trial of DCJPY, a yen-based digital currency backed by bank deposits, in November 2021.
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