In a bid to launch a new yen-based digital currency in 2022, about 70 Japanese companies have come together to form a consortium. The association which has some of the country’s biggest financial institutions joining in, is sending a strong signal that the private sector may have just started embracing blockchain-based payment systems too.

70 Japanese Companies To Launch DCPJY

The CEO of crypto exchange DeCurret, Kazuhiro Tokia may have issued a statement saying that the new digital currency dubbed ‘DCPJY,’ will be supported by bank deposits and would rely on a common platform to facilitate large fund transfers and settlements between the member companies.

DeCurret is leading the consortium, which includes banks like Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. Other companies participating in the consortium include 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 out of the 5 largest financial institutions in Japan, in terms of total deposits.

According to Reuters, the 70 Japanese companies have been consistently holding meetings since 2020, to deliberate on ways of creating a new settlement platform for digital payments.

BOJ’s CBDC Still On Schedule

In all of this however, the Bank of Japan BOJ is still very much focused on the development of a central bank digital currency (CBDC). As earlier reported by Coingape, the CBDC pilot tests should be completed by March 2022. The BOJ aims to provide seamless payment channels between electronic payment services and the so-called digital yuan. But even though the BOJ is at the forefront of this effort by the public sector, the ultimate plan is to incentivize private-sector acceptance of a CBDC.

Also to according to DeCurret adviser Toshihide Endo, the infrastructure being built by the 70 Japanese companies consortium, is in sync with the BOJ’s CBDC framework.

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Mayowa Adebajo