Friday, December 3

Japan banks to launch digital yen backed by bank deposits

The Japan Digital Currency Forum, comprised of 74 companies and banks, will shortly launch a digital yen backed by bank deposits. At the moment, the provisional name of the coin is DCJPY. Some of the main banks in the country are participating in the project, such as MUFG Bank, Sumitomo Mitsui Banking Corp, Mizuho Bank and Japan Post Bank. There is also the Nippon Telegraph and Telephone (NTT) group.

Bank of Japan to begin CBDC proof of concept this spring

Japan banks and digital yen

The Japan Financial Services Agency, the Ministry of Internal Affairs and Communications, the Ministry of Finance, the Ministry of Economy, Trade and Industry, and the Bank of Japan participate as observers. The test will focus on the feasibility of the digital currency for low-cost transactions and large payments between companies. It is expected to enter circulation in the second half of 2022.

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The Forum considers that the aforementioned digital currency will be able to connect with other digital platforms in many ways. Likewise, various economic and business activities may incorporate the functions of the digital currency depending on their needs, adding payment and settlement to a wide range of services.

Since its establishment in December 2020, the Forum has been discussing various digital currency use cases with major Japanese companies and banks. The objective, the Forum specifies, is to establish a new infrastructure that responds to the digitization of the economy and society. Ten subcommittees of the Forum are already working on the elaboration of different scenarios for the use of the digital currency. Among them, one of NFTs

It’s called DCJPY

Users of DCJPY, which will use blockchain technology, will be able to start making transactions with it as soon as they open an account. Electronic money, reports Nikkei Asia, is widely used in Japan, as tens of millions of travelers carry Suica and Pasmo rail passes, which function as smart cards, but primarily for small consumer transactions.

Japan thinks of a CBDC compatible with other countries to curb the digital yuan

Several central banks around the world are experimenting with digital currencies (CBDC). The Bank of Japan has not decided anything on this yet, but will begin its second phase experiments in April 2022.

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