A consortium of some 70 companies Japanese companies, including three large banks, will begin to test a yen-based digital currency to bring this digital product to market in fiscal 2022.
The digital currency, provisionally denominated DCJPY, will be supported by bank deposits and will use a common platform to ensure rapid large-scale fund transfers and adjustments between companies, as announced at a press conference this Wednesday, informs Reuters.
The financial trio of Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group have been meeting since last year to study how to build a common infrastructure for collections and payments digital.
The consortium includes other providers, such as Japan Post Bank, intermediary and insurance firms, as well as non-financial entities, some of which will participate in experiments with the new currency in sectors ranging from Energy until the retail commerce.
The project will be carried out outside the yuan digital, which is currently being developed by the central bank of Japan.
Japan is one of the countries with the highest circulation of cash, and many of the nation’s retail transactions are still carried out with banknotes and coins.
