A group of Japanese companies plans to issue a digital Yen

• A group of Japanese companies is planning to experiment with the issuance of a digital currency by next.
• This comes as the central bank also plans to experiment with a CBDC.

A group of Japanese companies – about 30 firms from different sectors – are reportedly mulling the need for issuing a common digital currency. The group’s organizing body revealed Thursday that they are preparing to experiment on digital currency by next year. This follows the recent plan of the Japanese central bank to experiment with a potential digital Yen in the coming year.

The Japanese companies want something different

Japan has been a country where the use of cash is prevalent. Despite the fact that there are digital platforms for transactions, none of them are big enough to dominate cash payments in the country, according to ex-executive at BOJ, Hiromi Yamaoka, who’s also the head of the group. The Japanese companies want something different and will be experimenting with the issuance of a common Japanese Yen by next year. 

Yamaoka explained that they do not wish to “create another silo-type platform. What we want to do is to create a framework that can make various platforms mutually compatible.” The group plans to use the digital currency as a common settlement option amongst the participating Japanese companies. The group includes telecommunication, brokerage, retailers, and utility companies, including three of the largest banks in the country. 

Japan embraces crypto

During the experiments, the planned digital currency will be issued by private banks, according to the report. However, the group’s organizing body won’t rule out the possibility of other entities issuing the digital currency at the time. Especially since the coronavirus outbreak, the Japanese authorities actively pushed for more adoption of cashless transaction methods. However, there are still inconveniences hindering the progress of digital payments in the country.

By 2021, the Bank of Japan (BOJ) plans to experiment with a central bank digital currency (CBDC) but will only launch one when it sees a core need for it.