Japan Wants Its Own National Cryptocurrency: The Digital Yen

2021-11-24 17:36:42
Private Sector Digital Yen Agenda

Japan is very close to creating its own national crypto coin, the digital yen. This is after a consortium of 74 Japanese companies released a white paper where they reveal plans to issue the digital yen by the end of the year 2022.

According to DuCureet, the secretariat of the consortium, the digital yen will have similar properties to bank deposits. The reason for this is because the bank deposits way of work provides unmatched stability, and as such greatly increase security.

Both the white paper and the progress report reveal that banks will play a key role in the implementation of the digital yen. As a result, the banks will be responsible for issuing the digital yen, as well as providing the infrastructure and logistics.

The initial goal of the consortium is to conduct a series of tests and experiments with the digital yen before issuing it. For that matter, they will use large transactions to test the currency already from January 2022.

As per the progress report, ‘the automatic execution of contracts using digital currency in settlement of maritime transportation for transactions’.

The testing will be conducted by the subcommittee of the consortium on Settlement in Industrial Distribution. The entity responsible for overseeing this testing procedure and for leading the project is the Mitsubishi Corporation.

What is even more interesting, is that the consortium will also ‘touch’ on the NFTs subject. According to the progress report, the companies intend to create a non-fungible token marketplace also by the end of 2022. Similar to the digital yen, Mitsubishi Corp. will most likely oversee this project as well.

Big Names

The Japanese companies that make up for the digital yen consortium consist of some of the biggest firms and corporations in the country. Some of which include various banks, telecommunication companies, industrial corporations, as well as the government.

Among the biggest names on the 74 list are Mitsubishi Corp., MUFG Bank, East Japan Railway, Sumimoto Mitsui Banking Corporation, Mizuho Bank and Nippon Telegraph & Telephone Corporation.

Representing the government, there are three different ministries that are going to be part of the project. And that is in addition to The Bank of Japan and the Financial Services Agency of Japan.

This is the first instance where private corporations are joining forces with the government to pursue an official cryptocurrency. And considering Japan’s efficiency and work ethic, it looks like this project is a success right from the start.

 

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