Banking

Interest rates raised in Japan

By Chiedza, April 03 2024

The Bank of Japan (BOJ) raised its main interest rate from -0.1% to between 0% and 0.1%. In 2016, the BOJ made the rate less than zero to help Japan’s economy.

The decision to raise rates depended on big companies increasing their workers’ wages to deal with the higher cost of living. Recently, Japan’s biggest companies agreed to increase wages by 5.28%, the largest increase in over 30 years. Wages had not increased since the late 1990s as prices rose very slowly or even fell.

The BOJ said there won’t be more rate increases for now. With inflation slowing down, it’s likely that workers will ask for smaller wage increases next year.

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Japan raises interest rates for first time in 17 years

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Banking

Blockchain Banking In Japan 2020

By Bret, October 26 2018

Blockchain refers to an expanding list of blocks where each one contains records. They are secured and linked to each other using cryptography. Within each block, you will find at the most basic level a hash of the previous block, timestamp, and the transaction data.

The origins of the blockchain technology are mysterious. Legend has it that Satoshi Nakamoto wrote the bitcoin white paper, developed bitcoin, and was behind the implementation and deployment of the original bitcoin.

The largest bank in Japan wants to switch to blockchain payments in 2020. This is an aggressive move and schedule as well. If successful Japan will find itself well ahead of other nations in terms of security and digital payments.

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Japan's Biggest Bank to Switch on Blockchain Payments in 2020

Launching J-Coin

By Betty, October 17 2017

A number of Japanese banks are set to launch a new national digital currency in a bid to wean citizens off cash, the Financial Times reports.

The FT says that a consortium led by Mizuho Financial Group and Japan Post Bank plan to launch the new digital currency in time for the Tokyo 2020 Olympics.

The new project, which has the support of Japan's central bank and regulators, aims to develop technology to allow Japanese people to pay for goods and services with their smartphone.

Cash currently represents 70% of all transactions by value in Japan but such a heavy cash dependency incurs costs for banks and governments. Banks must pay to handle, transport, and audit large amounts of cash, while governments risk losing tax revenue to undocumented cash-in-hand work or black market transactions.

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Japan wants to launch a new digital currency: J-Coin