Three Japanese Banks to Test Stablecoin on Ethereum-Compatible Blockchain 'Japan Open Chain'

Three Japanese banks, Tokyo Kiraboshi Financial Group, Minna no Bank and The Shikoku Bank, will test stablecoins on an ethereum-compatible blockchain called Japan Open Chain. The test will initially focus on the issuance of e-money and remittances, with future plans focused on a stablecoin system that meets legal requirements. The latter will involve local governments and private companies. Japan Open Chain, an Ethereum-compatible blockchain developed by GU Technologies in partnership with Dentsu, Minna Bank, Pixiv, Kyoto University of the Arts, and CORGEAR, uses a proof-of-authority (PoA) consensus algorithm that the organization says can record More than 1000 transactions. The developers will also investigate Layer 2 scaling solutions in the future.