About 70 of the largest financial institutions in Japan have formed a group in order to develop a new Yen-based digital currency in 2022. This move is indicating that the private sector is only now beginning to embrace blockchain-based payment.
Kazuhiro Tokia, the CEO of crypto exchange DeCurret, may have made a statement claiming that the new digital currency, nicknamed ‘DCPJY,’ will be backed by bank deposits and rely on a single infrastructure to handle big fund transfers and payments among member organizations.
The consortium, which comprises Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, is led by DeCurret.
Kansai Electric Power Co Inc., Japan Post Bank Co Ltd., East Japan Railway Co, and Nippon Telegraph and Telephone Corp. are among the consortium’s other members.
In terms of total deposits, Mizuho, Mitsubishi, Sumitomo, and Japan Post Bank are the four largest financial institutions in Japan.
According to Reuters, the 70 Japanese corporations have been meeting on a regular basis since 2020 to discuss ways to create a new digital payment settlement platform.
The Bank of Japan’s CBDC is not affected by this development
Despite this, the Bank of Japan (BOJ) remains committed to the establishment of a central bank digital currency (CBDC).
The CBDC pilot testing should be finished by March 2022, according to Coingape. The BOJ wants to make electronic payment services and the so-called digital yuan work together seamlessly.
Despite the fact that the BOJ is at the vanguard of this public-sector endeavour, the ultimate goal is to encourage private-sector acceptance of a CBDC.
According to Toshihide Endo, a DeCurret consultant, the infrastructure being created by the coalition of 70 Japanese companies is in line with the BOJ’s CBDC framework.