A group of roughly 70 Japanese companies, which includes the country’s biggest financial institutions, have joined together to trial and launch a new yen-based digital currency in 2022, conveying a strong sign that the private sector is accepting blockchain-based payment systems.
According to Kazuhiro Tokia, the CEO of cryptocurrency exchange DeCurret, The new digital currency known as “DCJPY,” will be supported by bank deposits and depend on on a common platform to accelerate large fund transfers and settlements among the partaking companies,.
DeCurret is leading the group, which includes banks such as Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group. It also consists of Japan Post Bank Co Ltd., Nippon Telegraph and Telephone Corp, East Japan Railway Co and Kansai Electric Power Co Inc. The group has been meeting frequently since last year to discuss creating a new settlement platform for digital payments.
The Bank of Japan has made the development of a central bank digital currency a priority, with a focus on providing seamless payment channels between the so-called digital yuan and electronic payment services. While the BOJ is spearheading this effort, the end goal is to incentivize private-sector uptake of a CBDC.
