Leading Japanese banks such as Japan Post, MUFG, Mizuho, and SMBC are taking an important step to enter the crypto industry with a plan to enable blockchain payments via a digital currency.
According to the White Paper published yesterday by the Digital Currency Forum organizations, a consortium of
74 organizations, the payment system will consist of a two-tier platform.
The temporary name of the currency will be Digital Currency JPY (DCJPY). DCJPY will use blockchain distributed ledger technology and will also be backed by bank deposits. When users open an account, they will be able to transact in digital currency.
The project, which has passed the Proof-of-Concept stage, was initiated by the DeCurret initiative. The firm also received an additional $62 million investment led by some of the banks included in the consortium.
Firms aim to integrate DCJPY into other digital platforms after the testing process. During the testing phase, the feasibility of the digital currency for low-cost commercial transactions will be tested.
It remains unclear how the launch of the DCJPY will affect the Bank of Japan’s CBDC work. Because in the previous statement from the bank, it was stated that the private sectors would work together to develop the CBDC.