SBI Ripple Asia leads a 61-bank consortium in Japan which represents over 80% of all of the country’s banking assets. Together with Ripple, the consortium is set to release a domestic payment app, ‘MoneyTap’ that settles transactions instantly.
This is a truly revolutionary set in the world of day-to-day domestic banking. Ripple’s core mission to see money move as freely and spontaneously as information is clearly manifesting. Takashi Okita, CEO of SBI Ripple Asia conveyed, “Together with the trust, reliability, and reach of the bank consortium, we can remove friction from payments and create a faster, safer, and more efficient domestic payments experience for our customers.”
Three of the banks in the consortium, namely SBI Net Sumishin Bank, the Suruga Bank, and the Resona Bank, will start using the app as soon as fall whereas all the other banks are scheduled to catch on later. Powered by MoneyTap, users will be able to make purchase 24 hours a day, 7 days a week, instantaneously.
Clearly, the app will make use of Ripple’s own blockchain technology which is mainly used as the underlying network for XRP – Ripple’s cryptocurrency. But, the technology is more often than not is used for more real-time transaction settlements. Since the blockchain networks boast a decentralized nature, it doesn’t need any intermediary banks or institutions in its path while settling money transfers. This very fact, allows the app to provide the fast service for which it is advertised.
Now, Japan is a huge market for financial technology. In comparison to other Asian countries like China and South Korea which restrictive regulations against cryptocurrency, Japan welcomes the digital currency with open arms. So a technology that merges traditional banking with blockchains is something that is to be expected from Japanese soil.
However, it is to be noted that as recently as January, Japan did encounter a massive hack of over $500 million from one of their crypto-exchanges – Coincheck. Following this, the Japanese government has pulled up its guards and has demanded inspection of crypto-exchanges for security flaws.