Soon after the decision issued by the Central Bank of Japan to test a digital currency, it’s the turn now of major private companies who have decided to be a part of an experiment. This experiment centers around the plan to launch a private version of the digital yen.
In an impressive move, more than 30 major Japanese companies have joined the initiative. The full list of the participants includes players from brokerages, telecommunication firms retailers, utilities, and most notably, three major Japanese banks.
The companies have proclaimed that the private bank s will be tasked with the launch of the digital fiat. However, the role of the other participants is unknown.
The project is expected to come to light sometime next year. The first step, as it goes with these things, is to conduct a number of experiments for the issuance of the digital currency. The experiments will be conducted using a common settlement platform. Former Bank of Japan executive Hiromi Yamaoka commented,
“What we want to do is to create a framework that can make various platforms mutually compatible,”
This new development comes after the Central bank of Japan released a draft of its plans to test a central bank digital currency (CBDC) sometime next year.
One thing to consider is that Japan has an economy based mostly on cash transactions. Only 20% or so of Japanese residents are cashless. As of yet, none of Japan’s digital platforms can beat surpass the cash payment tradition.