Large Japanese banks join consortium to launch yen-based digital currency

A consortium of about 70 Japanese companies, including the country’s largest financial institution, has teamed up to test and launch a new yen-based digital currency in fiscal year 2022, sending a strong signal to the private sector The payment system based on blockchain is being accepted.

The new digital currency called “DCJPY” will be backed by bank deposits and rely on a common platform to accelerate the transfer and settlement of large sums of funds between participating companies. according to Kazuhiro Tokia, CEO of DeCurret, a cryptocurrency exchange.

DeCurret is the leader of the consortium, which includes Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group. The consortium also includes Japan Post Bank, Nippon Telegraph and Telephone Company, East Japan Railway Company and Kansai Electric Power Company. According to Reuters, the group has been meeting regularly since 2020 to discuss the creation of a new digital settlement platform for payments.

exist Terms Among the total deposits, Mitsubishi, Mizuho, ​​Sumitomo and Japan Post Bank are the five largest financial institutions in Japan.

In the public sector, the Bank of Japan gives priority to The development of central bank digital currencyOr CBDC, which focuses on providing seamless payment channels between the so-called digital renminbi and electronic payment services.Although the Bank of Japan is taking the lead in this work, the ultimate goal is to incentivize the private sector to adopt Central Business District. As Cointelegraph reported, Pilot test of the Bank of Japan CBDC It is expected to be completed in March 2022.

related: Asia CBDC Project: What are they doing now?

DeCurret consultant Toshihide Endo said that the deposit support infrastructure being developed by the consortium conforms to the Bank of Japan’s CBDC framework, and he was the head of the Financial Services Agency of Japan.