Sumitomo Mitsui Banking Corporation (SMBC) has joined hands with SBI Group to invest in Ripple’s MoneyTap and R3’s Corda.

The deal will help Japan’s second largest bank to build a blockchain-based financial service network.

In addition, SMBC aims to extend and boost the use of distributed ledger technology in commercial finance and bank remittances.

SBI has led the development XRP-based products in Asia since the establishment of SBI Ripple Asia; a consortium comprising more than 60 Japanese banks.

SBI has stated:

“We regard blockchains as the core of FinTech innovation and are working on various measures both in Japan and abroad. Through this effort, we believe that we can contribute to the progress of the global blockchain field.”

Following some positive pilot tests, over 61 Japanese banks may use MoneyTap to clear off overseas trades, accounting for over 80 percent of the country’s reserves and market share.

SBI Bank LLC, a large Russian bank affiliated to SBI Group, has joined the R3 blockchain consortium to work with hundreds of mutual financial institutions on testing blockchain products.

Masayoshi Amamiya, Bank of Japan’s deputy governor, was reported today as saying that the bank should be ready to launch a digital central bank currency (CBDC) amid development of blockchain technology.

CBDC is a cryptocurrency issued by a central bank with a legal tender status and other centralized fiat coin properties.

While the official has not envisaged the issuance of CBDCs that had a significant impact on monetary policy effectiveness, he identified technical innovations within settlement systems as an area worth monitoring closely.

Cryptolydian earlier reported that the unexpected break-out of coronavirus in China and its continuing expansion could impact the local and global economy.

Japan’s Economy Minister forecasts corporate earnings and factory output to be negatively impacted by the virus.

Yasutoshi Nishimura said the coronavirus poses serious threats to global economy, adding that this epidemic would weigh on Japan’s economy, especially when it comes to tourism.

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