A Japanese Consortium to Launch Digital Currency for Clean Energy Certificates
A group of Japanese firms, led by cryptocurrency exchange DeCurret, plans to issue a digital currency by July 2024 for the transaction and settlement of clean energy certificates. The yen-based digital currency, known as “DCJPY,” will be issued by GMO Aozora Net Bank and will operate on DeCurret’s network.
Facilitating the Settlement of Clean Energy Certificates
The primary purpose of DCJPY is to enable the settlement of clean energy certificates, which assign an “environmental value” to energy obtained from non-fossil fuel sources. These certificates will be tradable using blockchain technology, enhancing transparency and security.
Backed by Bank Deposits for Seamless Transactions
DCJPY tokens will be backed by bank deposits and designed to link with bank accounts, ensuring seamless transaction settlements. This approach improves security by leveraging existing know your customer (KYC) and anti-money laundering (AML) practices while utilizing a traceable blockchain ledger. It distinguishes DCJPY from stablecoins, which are typically pegged to fiat currencies.
Lowering Payment Settlement Costs
In addition to its environmental benefits, DCJPY aims to significantly reduce payment settlement costs compared to traditional systems like direct debits and transfers. By leveraging the DCJPY network, cashless businesses can become truly digital, resulting in substantial cost savings for all stakeholders involved in payment settlements.
Potential Coexistence with Central Bank’s Digital Currency
The launch of DCJPY aligns Japan with other countries that have witnessed the emergence of digital currencies backed by bank deposits and blockchain technology. The DCJPY White Paper suggests that it has high potential for coexistence with the central bank’s planned digital currency.
Spearheading the Digital Currency Launch
DeCurret has been leading the efforts to launch the digital currency by driving discussions within a consortium of Japanese firms interested in utilizing this technology. The consortium includes major banks such as Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc.
Hot Take: Japan’s Push for a Sustainable Digital Economy
The introduction of DCJPY reflects Japan’s commitment to promoting sustainable practices and embracing digital innovations. By leveraging blockchain technology, the country aims to facilitate transparent and secure transactions for clean energy certificates. The adoption of digital currencies backed by bank deposits is a growing trend worldwide, and with DCJPY, Japan is joining this global movement. This initiative has the potential to revolutionize payment settlements and drive significant cost savings for businesses. As Japan continues to explore the possibilities of digital currencies, it positions itself at the forefront of creating a sustainable and efficient digital economy.
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