Japan to Test Bank-Backed Cryptocurrency Next Year
Three of the nation’s largest banks are partnering up for the project.
Japan will soon be testing its very own bank-backed cryptocurrency.
The new coin — tentatively called DCJPY — will be backed by a partnership between three of the country’s largest banking corporations: Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Financial Group. Up to 70 Japanese firms have already announced that they would launch the Yen-based cryptocurrency in 2022, and the three major players have been engaging in discussions since 2020 to build the necessary infrastructure for digital payments. Other members in the 70-strong consortium include massive companies such as the Kansai Electric Power Company and the East Japan Railway Company.
The new push for a digital currency will be an interesting development in Japan, which still heavily relies on cash. As Engadget notes, in 2018 up to 80% of all retail transactions in the nation were done through cash, and the government has been trying to change this trend for some time now in order to make its economy more productive and convenient for consumers, especially for tourists.
Elsewhere in related news, American banking organizations are seeking to clarify rules and regulations around cryptocurrencies.
