Japan announced last month to Reuters that it would start a test run of its own cryptocurrency next year. Some 70 large Japanese companies – three major Japanese banks, but also brokerage firms, telecoms, retailers and public bodies – are participating in the creation of this digital currency or CBDC (Central Bank Digital Currency).

The digital currency, tentatively called "DCJPY", will be backed by bank deposits and use a common platform to speed up large-scale fund transfers and settlement among companies.

The new coin will be backed by a partnership between three of the country's largest banking firms – Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Financial Group. As many as 70 Japanese companies have already announced that they will launch the yen-based crypto-currency in 2022, and the three major players have been in discussions since 2020 to build the infrastructure for digital payments. Other members of the 70-strong consortium include major companies such as Kansai Electric Power Company and East Japan Railway Company.

The new push for a digital currency will be an interesting development in Japan, which still relies heavily on cash. In 2018, up to 80% of all retail transactions in the country were conducted in cash, and the government has been trying to change this trend for some time now.

Read more about Central Bank Digital Currency HERE

Publié le 13 décembre 2021