A consortium made up of approximately 70 Japan-based firms, including the top-tier names in the nation’s financial sector, is reportedly working together on the trial and roll out of a new yen-based digital currency. 

Specifically, The new digital currency – goes by the name “DCJPY” – is reportedly slated to come out the next fiscal year, receiving the support from bank deposits, dependent on a common platform for expediting major funds transfers and settlements throughout the associated entities, as revealed by Kazuhiro Tokia, the chief executive of crypto exchange DeCurret.

DeCurret is reportedly taking charge of the leading role for the consortium, which sees the participation of banks Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group, along with Japan Post Bank Co Ltd., Nippon Telegraph and Telephone Corp, East Japan Railway Co and Kansai Electric Power Co Inc. 

Reuters reportedly revealed that meeting sessions have been held on a regular basis since last year, to talk about the development of a new settlement platform catering to digital payments.

Regarding the overall deposits, Mitsubishi, Mizuho, Sumitomo and Japan Post Bank are reportedly all the leading financial establishments of the country. 

Throughout the public sphere, the Bank of Japan has reportedly deemed the design of a central bank digital currency (CBDC) a priority, with a concentration on introducing seamless payment channels between what is referred to as digital yuan and electronic payment services. 

While the BOJ is taking charge of this attempt, the ultimate target is reportedly to offer an incentivization to the private-sector, to uptake a CBDC.

The Bank of Japan’s CBDC pilot tests are expected to be finalized by March 2022.