A group of large companies announced that they will start working on digital yen for Japan. The group consisting of over 30 large companies in Japan stated that they started this project in order to encourage digitalization in the country.
Increasing interest in digital yen studies in Japan came after the Bank of Japan (BoJ) news of digital central bank money (CBDC). The bank announced on October 9 that it will launch its digital central bank money work in April 2021. It was also stated in the report presented by the bank that the CBDC to be created is expected to be used with cash in accordance with the needs of the society, to support payment methods and to contribute to payment systems.
Many institutions come together for studies
According to the information shared by the Reuters news agency, it was stated that Japan’s three largest banks, some brokerage firms, telecommunications companies, some groups in the public and private sectors came together to create a common payment platform for Japan. This new group will start working to issue digital yen.
Hiromi Yamaoka, former Bank of Japan administrator, head of the group that will conduct digital yen studies, made some statements about the work. Yamaoka quoted:
“There are many digital payment platforms in Japan. But none of them are big enough to beat cash platforms. We do not want to create another silo type platform. What we want to do is create a system that can make all payment platforms mutually compatible. ”
According to Yamaoka’s statements, private banks will be responsible for the distribution of the digital yen to be made. However, it has been said that some meetings can be held so that other institutions or organizations other than private institutions can use this new digital currency. In the statements made, it was interpreted that following the developments in the field of global finance closely, it was a development showing that Japan’s awareness on digitalization has increased.