Bitcoin

<p>Soramitsu, a pioneering fintech developer from Japan that focuses on blockchain-based solutions, is spearheading an initiative aimed at constructing a seamless cross-border payment system for Asian countries.</p><h2 id="header-0">CBDC project involvement</h2><p>At the core of this emerging international network is Cambodia’s central bank digital currency (CBDC), Bakong, which has garnered increasing attention for its potential to revolutionize digital payments within the region.</p><p>Soramitsu has played a<a href="https://medium.com/&#64;coinness.gl/laos-to-prioritize-blockchain-for-digital-transformation-f0ea9f13b538" rel="noopener noreferrer nofollow"> pivotal role</a> in facilitating the issuance of Asian CBDCs, supporting both Cambodia’s Bakong and Laos’ Digital Lao Kip. Notably, Bakong has already demonstrated its prowess by facilitating QR code-based digital transactions between Cambodia and neighboring nations such as Malaysia, Thailand, and Vietnam. As of the close of 2022, Bakong boasts an impressive user base of 8.5 million individuals and has facilitated approximately $15 billion in payments.</p><h2 id="header-1">Replicating Cambodian CBDC success</h2><p>Tokyo-based news outlet Nikkei<a href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Japan-blockchain-startup-seeks-to-build-Asian-digital-payment-network" rel="noopener noreferrer nofollow"> reported</a> on Tuesday that the firm’s strategic focus is now on replicating the success of Bakong by enabling comparable cross-border payments between India, China, Laos, and potentially Japan. To this end, Soramitsu’s initial step involves establishing a dedicated Japanese exchange platform for stablecoins.</p><p>The envisioned system would enable streamlined transactions between countries, converting payments denominated in one CBDC to a stablecoin pegged to the recipient’s currency.</p><h2 id="header-2">Low transaction fees</h2><p>A key advantage of this innovative framework lies in its remarkably low transaction fees. By circumventing conventional interbank networks and intermediary banks, stablecoins can be directly transferred with minimal overhead costs.</p><p>Although the precise fee structure for the stablecoin exchange remains under consideration, Soramitsu envisions a nominal charge, likely in the range of tens of yen per transaction — a fraction of the cost associated with conventional cross-border transfers.</p><p>While exchanging stablecoins issued on the same blockchain is straightforward, the challenge arises when dealing with stablecoins issued on disparate blockchains. Soramitsu is actively<a href="https://medium.com/&#64;coinness.gl/japans-biggest-bank-explores-global-stablecoin-issuance-d7786cbee60e" rel="noopener noreferrer nofollow"> collaborating</a> with Mitsubishi UFJ Trust and Banking, one of the world’s largest financial services groups, and other prominent partners in Japan to develop the intricate exchange infrastructure necessary to facilitate such cross-blockchain transactions.</p><p>Japan’s payment landscape received a significant boost in June with the implementation of revisions to the payment law, enabling banks to issue stablecoins. In line with these regulatory changes, local startup JPYC and regional banks are poised to launch yen-denominated stablecoins, some of which are anticipated to debut by 2024.</p><p>Soramitsu’s vision for constructing a robust cross-border payment network has culminated in the formation of a dedicated project team. Collaborating with Tokyo-based digital services firm Vivit and the Tama University Center for Rule-making Strategies, Soramitsu is also exploring partnerships with major e-commerce platforms to maximize the network’s reach and impact.</p><p>The underlying motivation is to harness the potential of CBDCs and stablecoins to bridge the gap between Japanese small and medium-sized enterprises and individuals and businesses in Southeast Asia. Given the region’s high smartphone penetration and limited access to traditional banking services, this initiative could prove transformative, granting previously underserved populations greater financial inclusion.</p>

Japanese Startup Drives Asian Digital Payment Network Initiative

Table of Contents

CoinNess Global

Other articles published on Aug 10, 2023

Could the SEC ignite the Bitcoin Rally? Good and Bad News for BTC!

What is Worldcoin (WLD)? A Beginner’s Guide

Ripple and DigiToads rising, investors bullish

Y00ts Not Feeling at Home on Polygon Anymore as it Joins DeGods on Ethereum

20 Trillion SHIB Held by Robinhood, Bull Run Will Be Euphoric: Big Shiba Inu Enthusiast

SHIB vs. BONE: Which Crypto Has More Upside Potential?

Join our free newsletter for daily crypto updates!