Japan tests cryptocurrency backed by private banks

Japan is about to take the first decisive step towards creating its own digital currency. A consortium of about 70 Japanese companies is gearing up to launch a local yen-based cryptocurrency. This is expected to happen in 2022.

Notable about the project, tentatively called DCJPY, is that the country's three largest banks will actively support it. At a press conference on Wednesday, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group said they have been meeting since last year to create a common settlement infrastructure for digital payments.

Other members of the consortium include the East Japan Railway Company and the Kansai Electric Power Company. All participants plan to start testing the currency in the coming months.

This experiment is being conducted separately from the work of the Bank of Japan to create the "digital yen". National bank-backed cryptocurrencies are also an area of ​​research for the Chinese and US governments. But it's interesting how this experiment will develop in Japan, a country notorious for its attachment to cash. As of 2018, 80% of all retail transactions in Japan were done with bills and coins.

A source: reuters