Major Japanese financial institutions are switching to blockchain to simplify digital identity systems.

Japan’s third largest bank, Mizuho Bank, and national payment giant JCB are preparing to pilot a blockchain-based digital identity interaction system. Fujitsu announced on Thursday that the new system will use the blockchain solution developed by Fujitsu Laboratories.

The new joint initiative will enable companies to verify secure transfer mechanisms and link member IDs from multiple business operators. This data includes names, addresses and employers stored on a cloud platform created by Fujitsu Corporation. The pilot project will also involve 100 employees in the Fujitsu Group. The pilot program is expected to last for four months.

All three companies – Fujitsu, Mizuho Bank and JCB – have shown interest in the blockchain industry in recent years.

Fujitsu has been using blockchain technology in its digital identity management tools since 2019. In July 2019, Fujitsu Laboratories introduced its blockchain-based solution to assess user credentials and reliability of online transactions. The tool is said to allow users to award each participant a “trust score” based on user reviews stored in the blockchain.

In late 2019, JCB – Japan’s largest credit card issuer – announced plans to implement a new blockchain-based payment solution between companies. To develop the platform, the company has entered into a partnership with the blockchain-based commercial payment platform Paystand. In May, JCB also partnered with Techfund Technology Accelerator to create a fault-tolerant blockchain transaction system.

In February 2019, Mizuho Financial Group announced plans to launch a digital currency platform to offer payments and transfers.

Source: CoinTelegraph

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