Japan is about to become the first major market to use blockchain for money transfers after later this month three Japanese banks will start offering free money transfers via the MoneyTrap mobile app, reports Financial Times.
MoneyTrap was approved by the Japanese ministry of finance last week and is expected to help reduce the use of cash in the Japanese economy, which currently accommodates about 80% of all transactions.
The new platform is developed by SBI Ripple Asia – a partnership company between Japan’s SBI Holdings and the US blockchain developer Ripple and will be launched by three Japan banks – SBI Net Sumishin Bank, Suruga Bank, and Resona Bank.
Until now even for the transfer of a tiny amount the Japanese customers were obliged to pay 3 USD via the Zengin domestic payments system, which on top operates mostly in working hours and offers limited service during holy days and weekends.
Apart form that Ripple tried to revolutionize the payment industry back in April, by working with Banco Santander to allow the customers of the Spanish bank in UK, Spain, Poland and Brazil to send money in various currencies using blockchain technology all over the world.