Japanese trading firm Mitsui & Co. plans to issue a digital currency this month backed by gold prices through a cryptocurrency exchange.
ZipangCoin would be sold to investors and enable users to buy items from affiliated retailers using a smartphone application.
The firm has established a cryptocurrency exchange with Seven Bank, licensed by Kanto Local Finance Bureau and approved by the Financial Services Agency.
ZPG is pegged to gold sourced from London Metal Exchange at a yen-denominated price. One ZipangCoin would be equivalent to a gram of gold, and Sumitomo Mitsui Banking would be the guarantor.
The digital asset would be listed in the Mitsui exchange before opening to other exchanges. ZipangCoin would be supported through a private blockchain with an administrator.
The announcement comes even as the issuance of cryptocurrencies supported by legal currencies to banks remains prohibited in Japan.
Source: NIKKEI Asia