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70 Japanese companies form consortium to launch yen-based digital currency

With the goal of launching a new yen-based digital currency in 2022, around 70 Japanese companies have joined together to form a consortium. The association, which brings together some of the country’s biggest financial institutions, is sending a strong signal that the private sector may also have started to adopt blockchain-based payment systems.

70 Japanese companies will launch DCPJY

DeCurret’s crypto exchange CEO Kazuhiro Tokia may have issued a statement saying the new digital currency called ‘DCPJY’ will be backed by bank deposits and will be based on a common platform to facilitate transactions, large funds transfers and business-to-business deals .

DeCurret leads the consortium, which includes banks such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group. Other companies participating in the consortium are Kansai Electric Power Co Inc., Japan Post Bank Co Ltd., East Japan Railway Co and Nippon Telegraph and Telephone Corp.

Meanwhile, Mizuho, ​​​​Mitsubishi, Sumitomo and Japan Post Bank are 4 of Japan’s 5 largest financial institutions in terms of total deposits.

According to Reuters, the 70 Japanese companies have held regular meetings since 2020 to deliberate on ways to create a new settlement platform for digital payments.

BOJ CBDC always punctual

However, in all of this, the Bank of Japan’s BOJ is still very focused on developing a digital currency for the central bank (CBDC). As previously reported by Coingape, the CBDC pilots are expected to be completed in March 2022. The BOJ aims to provide seamless payment channels between electronic payment services and the so-called digital yuan. But while the BOJ is at the forefront of this public sector effort, the ultimate plan is to get the private sector to accept a CBDC.

Also according to DeCurret advisor, Toshihide Endo, the infrastructure being built by the consortium of 70 Japanese companies is in line with the BOJ’s CBDC model.