The Introduction of Japan’s Bank-Supported Digital Currency
The yen-pegged digital currency, backed by bank deposits, will be introduced in Japan by 2024. GMO Aozora Net Bank, a Japanese internet bank, will issue the currency called DCJPY. The turnover of this digital currency will take place on a blockchain network developed by DeCurret, a cryptocurrency exchange licensed in Japan.
Utilizing Digital Currency for Clean Energy Settlements
Initially, Internet Initiative Japan, a telecommunication firm, plans to use the yen-pegged digital currency for settling clean energy certificates. However, discussions have also taken place with other major Japanese companies like Mitsubishi UFJ Financial Group Inc to explore the potential uses of this technology.
Japan’s Embrace of Digital Services
Recent updates to payment regulations in Japan have spurred the local fintech firms and banks to invest in the research and development of digital services. Soramitsu, a Japanese blockchain company, has already begun working on a cross-border payment system using Cambodia’s central bank digital currency (CBDC) and blockchain technology. Their long-term plan is to collaborate with countries such as India and China to promote wider adoption.
Hot Take: Japan Paves the Way for Digital Currency Innovation
Japan is positioning itself at the forefront of digital currency innovation with the introduction of its bank-supported digital currency. By leveraging blockchain technology and collaborating with major players in various industries, Japan aims to foster the adoption of digital services and drive economic growth. The use of the yen-pegged digital currency for clean energy settlements demonstrates its potential for transforming different sectors. As Japan continues to embrace this technological shift, it sets an example for other countries looking to explore the possibilities of digital currencies and their applications.
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