Clouds gathering over the Tokyo skyline at sunset were captured on July 23rd, 2021. Now, a consortium of Japanese companies are aiming to issue a digital currency by July 2024 in order to facilitate the transaction and settlement of clean energy certificates.
GMO Aozora Net Bank has been appointed to issue the yen-backed currency, called DCJPY, which will operate on a network launched by DeCurret. From July 2022, it is intended to be used by Internet Initiative Japan for the settlement of clean energy certificates, which are assigned an ‘environmental value’ to energy procured from non-fossil fuel sources. The companies plan to use blockchain technology to make the certificates tradable.
DCJPY tokens will be backed by bank deposits, with the intention of linking with bank accounts to enable the seamless settlement of transactions. This will improve security by using banks’ existing KYC and AML practices alongside a traceable blockchain ledger. It is also hoped to drastically lower payment settlement costs as compared to the existing system of direct debits and transfers.
If cashless businesses can become truly digital by using the DCJPY network, there will be cost savings for all stakeholders involved in payment settlements. The launch would align Japan with other countries that have seen an increase in the number of digital currencies backed by bank deposits and block-chain technology.
The DCJPY White Paper states that the currency has a high potential for coexistence with the central bank’s planned digital currency. DeCurret has been spearheading the launch of the digital currency, anchoring discussions at a consortium of Japanese firms keen to tap the technology. The consortium, which includes megabanks Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc and Sumitomo Mitsui Financial Group Inc, has been meeting regularly to study ways to build a common settlement infrastructure for digital payments.
Reporting by Leika Kihara and Anton Bridge; Editing by Krishna Chandra Eluri and Simon Cameron-Moore. Our Standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights.
