After legalizing Bitcoin as a country-wide authorized means of payment, Japan is moving to establish a standard blockchain platform for its banking industry.
Currently there are a number of blockchain tech players, and the global banking and financial sector has to make a choice of platform based on the existing solutions providers offer. This approach has generated concerns about the interoperability of these blockchain development products.
To this end, the Japanese Bankers Association has set to bring together its member institutions to utilize a common blockchain platform so as to set the stage for future integration and acceptance of new organizations on board.
The project, which was officially announced on April 13, will resemble global initiatives such as the R3 Blockchain Consortium and Hyperledger Project. Once the solution is adopted by Japan’s banking institutions, the transaction costs are foreseen to drop by approximately 90%.
The new ledger network is to substitute the Zengin server system currently in use by the banking sector.
The implementation of the new blockchain solutions in the country will likely lead to an increase in the use of Bitcoin.