Home Tech ‘Stablecoining’ the Yen: How Groundbreaking Exactly Is the New J-Coin?

‘Stablecoining’ the Yen: How Groundbreaking Exactly Is the New J-Coin?

Following the steps of JP Morgan, the Japanese banking giant Mizuho Financial Group has announced the release of its yen-pegged stablecoin this March 1st.

The announcement, which sets the scene for the entrance of a $1.8 Trillion competitor to the crypto market, is anything but small: It also means the eventual inclusion of Alibaba and AliExpress in a market that’s avid for retailer adoption.

The Bankers’ Irruption

Photo by Jezael Melgoza on Unsplash

2018’s buzzword ‘institutional money’ meant investors wanted the big players of the financial market to invest in Bitcoin, and maybe in Ethereum too. Few considered the possibility of many of them giving birth to their own cryptographic –but essentially fiat — currencies. While it is true that J-Coin can potentially spark a wave of adoption never seen in Japanese lands, this also means the perpetuation of the current financial system.

The case for Asset-backed

Bringing the asset-backed standard back to currency is, in our eyes, the big challenge of the current crypto market. ‘Traditional’ cryptos suffer from extreme volatility in a market that doesn’t forgive a ‘dump’, nor wants to use unstable assets for everyday transactions.

For asset-backed stablecoins, however, the sky is the limit. This unique type of currency features all the advantages and unique characteristics of the blockchain (faster payments, borderless systems, full democratisation, etc.) and combines them with the simple, intrinsically valuable concept of currency as it was conceived.

DiamCoin’s Dollar-Pegging and Underlying Asset Reserves

Photo by Mahkeo on Unsplash

A point has to be made when it comes to defining the price of an asset-backed currency. In its original inception, DiamCoin was meant to be pegged to the price of one a milli-carat of a diamond. However, we quickly discovered the simplicity of a diamond-backed dollar.

Providing a currency that’s backed by diamonds allows DiamCoin to be perfectly stable and, with the right mechanisms and smart contracts, remain at the mark of $1. It also allows our system to revolutionise payments and disrupt the diamantaire industry, creating a system where customers can redeem their DiamCoin’s worth of diamonds on a platform that interconnects thousands of manufacturers.

At the core of our values, we believe in democratising financial systems. We also understand that the blockchain allows for many different ways to make and use money, which makes us show up day in and day out to create a unique, perfectly stable coin.

Source