GMO Internet Group Launch Yen-Pegged Stablecoin
Japan’s GMO Internet Group has announced plans to issue a yen-pegged stablecoin known as GMO Japanese Yen. The company has already in the crypto exchange and mining hardware businesses and plans to launch its 3rd crypto enterprise with this stablecoin.
GMO Internet Group announced that it will start full-scale preparations to issue stable coins of virtual currency, with an eye to enter into the ‘settlement’ area of virtual currency business. GMO Japanese Yen will be launched through the global brand ‘Z.com’ in the overseas strategy of the GMO Internet Group. It will be a ‘yen-pegged currency’ linked with the Japanese yen. Noting that there are already 57 stablecoins in the world, 23 of which are already in circulation, GMO disclosed that “We plan to start issuing the stablecoin for the Asian region around the fiscal year 2019.
3rd Crypto Business
GMO has 2 businesses in the crypto space: the exchange business which started in May last year and the mining business which started in December. GMO revealed that it has been investigating and researching whether the virtual currency could be the settlement currency from the viewpoint of volatility. In its earnings presentation published in August, the company outlined another crypto business area it seeks to enter known as cryptocurrency payment.
GMO’s Hope for Its Stablecoin
According to GMO, in order to solve the hyperinflation problem seen in many developing countries, issues such as true non-centralization need to be overcome. The firm also believes that even in developed countries, stablecoins have a potential to become a global standard innovative financial infrastructure. The firm said that stablecoins can be a solution to this problem as a currency to replace low-credit domestic currencies. The firm described that one of the tasks is to stabilize price fluctuation, which is a risk to remittance and settlement, in order to increase the spreading and development of the virtual currency.