Japan Consortium Plots Digital Yen
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Participants include MUFG Bank, Sumitomo Mitsui Banking, Mizuho Bank, Japan Post Bank, Nippon Telegraph & Telephone Corp., East Japan Railway, and Mitsubishi, as well as local governments. The Bank of Japan, Financial Services Agency of Japan, and three ministries are observing its activities.
Digital Currency Forum – a consortium of 74 Japanese firms – is planning to issue a digital yen that will work similarly to bank deposits by the end of 2022, according to a white paper published on Wednesday.
Tentatively called DCJPY, the digital yen will be issued by banks as their liability, and the consortium will also be releasing a beta version of the digital currency marketplace for non-fungible tokens (NFTs) by 2022, DeCurret, the consortium’s secretariat, said.
Members of the consortium will participate in experiments to gauge such a currency’s use in industries ranging from energy to retail, from as early as January, according to the progress report. The consortium’s subcommittee on Settlement in Industrial Distribution, led by Mitsubishi, will be testing the automatic execution of contracts using digital currency in the settlement of maritime transportation for transactions.
Questions & Answers
Q.Which Japanese government bodies are involved in observing the digital yen project?
Which Japanese government bodies are involved in observing the digital yen project?
The Bank of Japan, the Financial Services Agency of Japan, and three ministries are observing the activities of the consortium. This oversight indicates significant official interest in the development.
Q.What is the planned timeline for the digital yen's issuance and beta marketplace launch?
What is the planned timeline for the digital yen's issuance and beta marketplace launch?
The consortium plans to issue a digital yen, tentatively called DCJPY, by the end of 2022. A beta version of the digital currency marketplace for NFTs is also expected to be released by 2022.
Q.How will the digital yen function, and which entities will issue it?
How will the digital yen function, and which entities will issue it?
The digital yen is planned to work similarly to bank deposits. It will be issued by banks as their liability, according to the white paper published by the Digital Currency Forum.
Q.In which specific industry is the digital currency being tested for automatic contract execution?
In which specific industry is the digital currency being tested for automatic contract execution?
The consortium's subcommittee on Settlement in Industrial Distribution, led by Mitsubishi, will test automatic contract execution using the digital currency in the settlement of maritime transportation for transactions.
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