Japanese banks to launch, test stablecoins on ‘Japan Open Chain’

[zasad@]

Japanese press release
https://prtimes.jp/main/html/rd/p/000000019.000083257.html

https://forkast.news/headlines/japanese-banks-to-launch-test-stablecoins-on-japan-open-chain/

Three major banks in Japan will issue stablecoins on an Ethereum-compatible blockchain created by Tokyo-based G.U. Technologies, the blockchain-related tools developer announced in a press release on Thursday.

https://forkast.news/headlines/japan-to-launch-digital-yen-pilot-programme-in-april/
Japan to launch digital yen pilot programme in April

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[jackg]

I still can't decide how well these might do (even for the trials) and if they'll ever be released normally. I guess there's similarities between so many countries having their own fiat system and it should be a safer method of exchange than fiat (but less safe compared with banking) just looking at the potential for counterfeits to cause a problem.

It also seems weird that 6-12 months ago there were lots of complaints about cryptocurrency being bad for the environment and now a bunch of countries are trying to launch their own unnecessary version of what already exists - also it feels like it'll be EVM compatible because that's either what the devs like or because they can (although maybe there's an NFT plan there, or a tornado cash one for the banks ).

[zasad@]

The future belongs to the Ethereum ecosystem. I wrote about this in September 2019
https://bitcointalk.org/index.php?topic=5198245

There are a lot of programmers for this ecosystem, so they did the right thing by choosing this platform. In Russia, Sberbank also promises to launch its products on the Ethereum blockchain, I will see how it will work. Even if Japanese banks have separate ecosystems, due to interoperability, they can be connected to the Ethereum Ecosystem through bridges.
https://www.reuters.com/markets/europe/russias-sberbank-launch-defi-platform-coming-months-interfax-2023-02-03/

[avikz]

It's quite strange for Japan to issue stablecoins on ETH blockchain. As a country, this is a very drastic step to take. Usually countries do prefer to use their own private blockchain 5o issue digital currencies. But this will be the first time a public blockchain will be used to hold a national digital currency.

That is certainly going to give a huge trust boost to ETH ecosystem. It will be interesting to see how the pilot works!

[zasad@]

It's quite strange for Japan to issue stablecoins on ETH blockchain. As a country, this is a very drastic step to take. Usually countries do prefer to use their own private blockchain 5o issue digital currencies. But this will be the first time a public blockchain will be used to hold a national digital currency.

That is certainly going to give a huge trust boost to ETH ecosystem. It will be interesting to see how the pilot works!

If I understand the press release correctly, the blockchain will be private. But since the algorithms are the same, these blockchains can be easily connected. More information will come after citizens can test the stablecoins. But this year there will be a lot of similar information from many countries.

[cabron]

From what I understood was that each bank in Japan can release a stablecoin of its own and then the Central Bank will also have CBDC. Could it be that the CBDCs are layer2 scaling protocol on Ethereum and then each bank stablecoins are tokens on top of it?

Russia has Defi which is more appealing to users and investors who want to make money on it. So far these are just the two countries that have some sort of update about thier digital currency.

[dansus021]

So chain that called 'Japan Open Chain' is can see by other people I mean will there an explorer  . I mean why made new chain when you can find a dozen of it in crypto but if the chain is public is a progress. and this different from their CBDC right?

[zasad@]

From what I understood was that each bank in Japan can release a stablecoin of its own and then the Central Bank will also have CBDC. Could it be that the CBDCs are layer2 scaling protocol on Ethereum and then each bank stablecoins are tokens on top of it?

Russia has Defi which is more appealing to users and investors who want to make money on it. So far these are just the two countries that have some sort of update about thier digital currency.

Russia does not have its own DeFi ecosystem.
I only know about plans for this May
Russia’s Sberbank Plans to Launch DeFi Platform by May 2023
https://tokenist.com/russias-sberbank-plans-to-launch-defi-platform-by-may-2023/

The Russian financial market is not as big as the American or European ones, and sanctions will prevent many large companies from participating, but I will write about it later.

[cabron]

From what I understood was that each bank in Japan can release a stablecoin of its own and then the Central Bank will also have CBDC. Could it be that the CBDCs are layer2 scaling protocol on Ethereum and then each bank stablecoins are tokens on top of it?

Russia has Defi which is more appealing to users and investors who want to make money on it. So far these are just the two countries that have some sort of update about thier digital currency.

Russia does not have its own DeFi ecosystem.
I only know about plans for this May
Russia’s Sberbank Plans to Launch DeFi Platform by May 2023
https://tokenist.com/russias-sberbank-plans-to-launch-defi-platform-by-may-2023/

The Russian financial market is not as big as the American or European ones, and sanctions will prevent many large companies from participating, but I will write about it later.

That's what I mean. Russia has not launched the Defi yet but that's the plan. It might just be great for the oligarchs in the country to invest in that Defi project.

Japan's stablecoins are not very different from what is in crypto where there are several projects releasing stablecoins. They have several banks launching stablecoins and what happened to USDC today may also happen to one bank.

[joniboini]

I mean why made new chain when you can find a dozen of it in crypto but if the chain is public is a progress. and this different from their CBDC right?

A quick Google translate shows that this is their own version of CBDC[1], that's how I understand it. I mean, the assumed use case of the pilot project and probably future implementation of this digital Yen are including but are not limited to:
- Payment networks for individuals and businesses like SWIFT network
- Any online payment that charges fiat from your credit card
- Digital stable coins issuance
- etc.

At the very least, this pilot might serve as a basis for the central CBDC. I can't imagine how troublesome it would be if they have many chains with different kinds of digital coins being issued by different parties. Unless they can converse one token to another in an instant or build a proper bridge that has good security, the risk of hacking and so on is too high IMO. Building a private chain is understandable to avoid unnecessary exposure, let's see how they handle international transfer though. I doubt other governments would agree to store their yen reserve on a chain owned by a single entity.

[1] https://prtimes.jp/main/html/rd/p/000000019.000083257.html

[zasad@]

From what I understood was that each bank in Japan can release a stablecoin of its own and then the Central Bank will also have CBDC. Could it be that the CBDCs are layer2 scaling protocol on Ethereum and then each bank stablecoins are tokens on top of it?

Russia has Defi which is more appealing to users and investors who want to make money on it. So far these are just the two countries that have some sort of update about thier digital currency.

Russia does not have its own DeFi ecosystem.
I only know about plans for this May
Russia’s Sberbank Plans to Launch DeFi Platform by May 2023
https://tokenist.com/russias-sberbank-plans-to-launch-defi-platform-by-may-2023/

The Russian financial market is not as big as the American or European ones, and sanctions will prevent many large companies from participating, but I will write about it later.

That's what I mean. Russia has not launched the Defi yet but that's the plan. It might just be great for the oligarchs in the country to invest in that Defi project.

Japan's stablecoins are not very different from what is in crypto where there are several projects releasing stablecoins. They have several banks launching stablecoins and what happened to USDC today may also happen to one bank.

Do you really think that the oligarchs will invest money in incomprehensible DeFi projects?
So far, there are only plans, and there is no specific information. Until I see the open testing of the platform, I have no understanding of how this ecosystem works.
So far, I have dozens of questions, but there are no answers to them either on the official website of Sberbank or on the Internet. From May 1 to May 9, holidays in Russia and most companies do not work. I'm sure we won't see anything before May 10th.