Over 70 Japanese firms are reportedly looking to make their inception into the cryptocurrency sphere, as they’re seeking to launch a yen-pegged digital currency. In fact, the plans are to launch such a digital asset by the fiscal year of 2022.
The virtual currency is tentatively named DCJPY, and the reports suggest that it will be backed by bank deposits and could be used as a common platform to arrange large-scale fund transfers. At least that’s what had said Kazuhiro Tokita, Chief Executive Officer of DeCurrent, a cryptocurrency exchange that is leading the consortium.
Major Japanese Banks Involved
There are heavyweight companies from different sectors, such as banking and the tech ones. For example, Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc are part of the consortium that could be launching the JPY-based cryptocurrency.
“A digital currency system built on a bank deposit-backed common platform will fit the CBDC that could be planned and implemented in Japan,” Toshihide Endo, a former head of Japan’s Financial Services Agency, commented.
Other members in the consortium include PayPay, which is backed by SoftBank Group Corp, a tech investor, as well as Japan Post Bank Co Ltd, brokerages and insurers, and non-financial firms such as Nippon Telegraph and Telephone Corp, Kansai Electric Power Co Inc., and East Japan Railway Co.
One of the challenges that the forthcoming yen-pegged cryptocurrency could face is the regulatory barrier that Japan has in place for the industry. The country of the rising sun is known for its stricter rules on the financial markets, including the crypto sphere.
Also, the maneuver sought by the consortium could go in the other way of the ongoing discussions about a possible central bank digital currency (CBDC) issued by the Bank of Japan (BoJ)
In fact, Japanese policymakers already stated that they would provide support to the private sector in case that the CBDC’s plans get the green light from the BoJ.