GMO Internet, Japan’s largest service provider, announces a new stable coin pegged to the yen to be used within its payment system.
The GJY will be launched through the brand Z.com on which the international activities of GMO gravitate.
GMO is certainly not the latest arrival in the virtual currency sector: it is already present on exchanges with its GMO Coin and at the same time it also carries out mining activities, but with this stable coin it would considerably widen its range of action by entering a completely new sector.
Stable coins are currencies that keep the value stable through a series of mechanisms, including full or partial backing in the reference currency; they are an optimal solution when the virtual currency wants to be used as a payment instrument, even internationally: while normally cryptocurrencies are subject to high volatility, which makes the price paid uncertain, a stable coin has a non existence volatility compared to the reference value.
Normally this type of coin is divided into three categories: 1) stabilized against a fiat currency; 2) stabilized against a basket of virtual currencies; 3) stabilized through market instruments.
This future GJY will belong to the first category. In general, there are currently 57 cryptocurrencies that call themselves stable coins, 23 of which are already in circulation, for a total counter value of 3 billion dollars.