Mitsui & Co. To Issue a Gold Pegged Digital Coin
According to local news, Japan’s Mitsui & Co. plans to roll out a cryptocurrency pegged to gold’s actual value. The company has already acquired gold to act as reserves for its cryptocurrency. The coin will be called ZipangCoin (ZPG) and trade via crypto exchanges.
Japan’s Mitsui To Issue Gold-Backed Cryptocurrency
Japan’s Mitsui & Co has confirmed plans to roll out a cryptocurrency backed by gold. The ZPG coin will trade through crypto exchanges by retailers. The company chose to make this coin like a Stablecoin that tracks the spot value of gold to minimize the volatility of typical cryptocurrencies.
Like typical digital payment protocols, ZPG will also be available to customers through their smartphones and from affiliated retail traders. It is an alternative to the digital payment sector growing at a considerably high rate in the country.
The gold-backed stablecoin will be the first of its kind in Japan and will first feature in Mitsui’s exchange before the other exchanges during the premiere. The exchanges that want to list the coin will have to incorporate proper KYC systems. The coin will also be monitored by a private blockchain rather than the typical decentralized ones to help control money laundering congestion and chase away bad players.
More on Mitsui’s Gold-Backed Digital Coin
Since gold is a physical asset, Mitsui has selected it to mitigate the risks of inflation that are common in cryptocurrencies. The metal can also be applied in ETFs, but many argue that it may work out better when used to back cryptocurrency for the youths.
Mitsui has developed this coin with plans to mainstream it to the digital payment systems of the country. Its users will be required to open the supported wallets on their smartphones and use the coin or payments at their convenience.
Crypto and Crypto Products Adoption Increases
Japan is among the few countries with a crypto regulation system. However, no country can brag that they have a ready solution for regulating the coins in a friendly and risk-free way. Some authorities are allowing the trading of coins with lower risks.
Japan is among the countries that are starting to welcome the development of crypto projects. Last year, three megabanks, the NTT group, and 74 other Japanese organizations announced plans to test a bank deposit-backed crypto. This consortium of organizations has already developed a fiat-backed cryptocurrency called the DCJPY. They plan to make the coin available to facilitate remittances between their members in H2 of 2022.
Major corporations in the US are also rallying towards crypto adoption with different projects and strategies. US-based social media companies like Twitter and Meta have already confirmed their interests in the crypto space. Meta is already leaping from their Metaverse project while Twitter is still figuring out how to adapt these coins. It also introduced a BTC tipping system, Tip Jar, last September.
Even though Japan is among the countries with tight cryptocurrency regulations, the above developments are somewhat encouraging. IT shows that they are moving towards a positive direction regarding crypto adoption. However, only time will tell what the future of cryptos will be like in the wake of regulation.
