ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Banking & Finance

Mizuho develops its own virtual currency

The blockchain-based system has potential, but security concerns remain

 (placeholder image)
Mizuho mulls potential uses for its digital currency, developed together with IBM Japan.   © Reuters

TOKYO -- Mizuho Financial Group has partnered with IBM Japan to develop a digital currency that could reduce the cost of money transfers and lead to new mobile payment services.

The Japanese megabank and IBM tested the virtual currency from July to September using an app that calculates how much each member of a dinner party owes for meals and drinks.

In the trial, 1 yen equaled one unit of the currency. The duo tested if one person could pay the whole bill using the currency, and if it is possible to create services that would, among other things, alert members to the amount they owe.

While the testing did not reveal any major problems, safeguarding user information remains a concern, according to Mizuho. The group will consider whether actual services can be created using the currency.

Perhaps the world's best-known virtual currency, bitcoin, already uses blockchain technology. Since the technology does not require major information technology investments, operating costs can be kept low.

Virtual currencies have the potential to lower handling fees in bank transactions significantly, as users can make transactions directly with one another using their own computers or smartphones.

Another big Japanese bank, Mitsubishi UFJ Financial Group, is pursuing its own virtual currency.

But virtual currencies run the risk of being targeted in cyberattacks. Regulators including the Financial Services Agency are working to address privacy and other security concerns.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media