Sumitomo Mitsui Card, a subsidiary of SMBC Group (Japan’s second largest bank) and among the country’s largest card issuers, has launched pilot testing of stablecoin payments authenticated through Japan’s government issued identification cards. The partnership with fintech startup MynaWallet positions the major card issuer to maintain merchant relationships even if blockchain payments disrupt traditional card networks.
The trials, beginning January 23-24 at basketball games in Fukuoka, will let users tap their My Number cards (Japan’s national ID cards carried by most residents) on Sumitomo Mitsui’s stera payment terminals to execute stablecoin transactions. The approach eliminates the need to install cryptocurrency wallet applications, potentially making blockchain payments accessible to demographics like the elderly and children who might find smartphone crypto apps intimidating. The companies announced plans for expanded testing across retail locations, tourism sites and municipal services.
The partnership connects Japan’s existing national identification infrastructure with blockchain payment rails. My Number cards, issued to Japanese residents for accessing government services and benefits, contain secure chips supporting Japan’s Public Key Infrastructure (JPKI) authentication system. MynaWallet’s service links these cards to Ethereum-compatible smart contract wallets, allowing the physical card to authorize blockchain transactions without users installing cryptocurrency wallet applications.
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