A Japanese Consortium Plans to Launch a Yen-Based Digital Currency for Clean Energy Certificate Settlements
A group of Japanese companies is collaborating to introduce a digital currency called DCJPY, which will be denominated in yen. The purpose of this currency is to facilitate transactions and settlements involving clean energy certificates. The project is being led by cryptocurrency exchange DeCurret, with GMO Aozora Net Bank issuing the DCJPY stablecoin. Internet Initiative Japan (IIJ), a telecommunications firm, will then utilize the currency to settle clean energy certificates. Transactions involving DCJPY will be executed on DeCurret’s blockchain-based network, which is backed by bank deposits.
Legislation Supports the Development of Stablecoins in Japan
The development of stablecoins in Japan has been supported by the Revised Funds Settlement Act, which was passed in 2022. This legislation recognizes stablecoins as a new electronic payment method and allows banks, trust companies, and transfer operators to issue them. Binance, a cryptocurrency exchange that holds a license to operate in Japan, has qualified as an issuance partner for stablecoins. Other companies can also apply for licenses from the Financial Services Agency of Japan to issue their own stablecoins.
Mitsubishi’s Progmat Platform Enables Streamlined Transactions and Asset Digitization
Mitsubishi has developed the Progmat platform in alignment with the Revised Funds Settlement Act. This platform supports the issuance of stablecoins backed by yen and US dollars. It enables businesses to streamline foreign trade transactions, purchase digital securities, and engage in non-fungible token (NFT) activities. The Progmat platform involves financial institutions depositing an equivalent amount of fiat currency with MUFG’s trust bank, which then issues an equivalent amount of stablecoins. The funds held by the trust bank are bankruptcy-remote, ensuring the security of the stablecoins for use on public blockchains.
Hot Take: Adoption of Digital Currencies Could Transform Transactions in Japan
The introduction of a yen-based digital currency and the development of stablecoin platforms have the potential to revolutionize transactional processes in Japan. By leveraging blockchain technology and secure stablecoins, businesses can streamline their operations and engage in new forms of digital asset trading. These initiatives not only support the adoption of digital currencies but also position Japan as a leader in this evolving landscape. As more companies embrace these technologies, we may witness a significant shift in how transactions are conducted, paving the way for a more efficient and secure financial ecosystem.
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