Japanese Banks Trial Virtual Currency For Funds Transfers

Members of Japanese bank consortium focused on blockchain is set to test a virtual currency-based funds transfer system.

AccessTimeIconApr 27, 2017 at 2:50 p.m. UTC
Updated Sep 11, 2021 at 1:16 p.m. UTC

Members of a Japanese bank consortium focused on blockchain are set to test a virtual currency-based funds transfer system.

Institutions including Bank of Yokohama, Mizuho Financial Group and Resona Bank are taking part in the new trial, according to a report from Nikkei.

The test is the latest from the unnamed consortium, which is led by financial services firm SBI Holdings and a joint venture between that firm and distributed ledger startup Ripple, first launched in January 2016.

More than 50 institutions are part of the initiative, which has tested other applications of Ripple's tech in the past.

According to Nikkei, the banks want to assess the ability to send domestic fund transfers outside of normal operating hours, as well as to see how a virtual currency used between banks could cut costs. Further, the banks are said to be weighing the creation of a wholly new virtual currency or digital token for this purpose.

Additionally, the test could expand beyond domestic transfers, the outlet reported.

"The consortium is also considering testing virtual currency-based international fund transfers. The hope is that the use of blockchain technology may be able to lower costs compared with SWIFT, the global payments network," Nikkei said.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple. 

Image via Shutterstock 


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.