GMO to Release Japanese yen Linked Stable Coin “GMO Japanese YEN” in 2019
GMO Internet Corp. announced plans to issue its own Japanese yen peg currency called “GMO Japanese YEN” in Asia next year.
It announced that “earnest preparations to issue a stable cryptocurrency have begun.”
“GMO Japanese YEN (ticker symbol: GJY),” a stable coin (yen peg currency) linked to the Japanese yen to be issued in FY 2019 in Asia | GMO Internet Corp. https://t.co/XGKwzWPqGv
— Masatoshi Kumagai (@ m_kumagai) October 9, 2018
The following intentions were clarified in the GMO press release.
“We are preparing to issue stable coins to support borderless transactions of cryptocurrencies focusing on their potential to realize price stability in anticipation of the future utilization of settlement using cryptocurrencies.”
A stable coin is cited as a measure to improve the devaluation of currencies caused by inflation in many developing countries. Stable coins linked with legal tender such as the Japanese yen is cited as “a potential to become an innovative and global financial infrastructure.”
The GMO Japanese Yen (ticker symbol: GJY) is a legal tender collateral type (yen peg currency), pledged as collateral by the Japanese yen, and is considering a currency board system.
What is the currency board system?
The currency board system is one of the exchange rate policies. It holds the same amount of Japanese yen as the “yen peg currency” and secures its value.
GMO has already entered the exchange and mining areas of the cryptocurrency domain. If it begins issuing the stable coin, it will be used extensively in the settlement area.