Group of Japanese firms to conduct Digital Yen pilot test

A group of 30 Japanese firms is planning to test out Digital Yen in order to establish a common platform and to eliminate cash transactions.

By · Nov 21, 2020 . 5min read

Japan Digital Yen pilot test latest news

Over 30 major Japanese firms will come together for conducting a pilot test to issue a private digital currency or digital yen. According to Reuters, the pilot project will commence in 2021. The companies desire to develop a common digital currency platform via digital yen.

According to the blog post, a group of Japanese firms are planning to carry out pilot tests attempting to issue a digital Yen. The group comprises Japan’s three largest banks, utility firms, retail companies, telecommunication companies, and stock brokerage firms. The move occurred when the Bank of Japan unveiled its intention to carry experiments for establishing the nation’s CBDC. Moreover, the pilot project is part of Japan’s initiative to support the application of cashless payments.

In Japan, various digital platforms are inconsistent with each other. The authorities in Japan have been enthusiastic about promoting cashless transactions to enhance transparency and operational efficiency of public services in order to exclude theft and other cash-related crimes. Nevertheless, the progress has been pretty slow partially owing to the troubles linked with digital payments.

Coronavirus outbreak pushes Japan’s Digital Yen adoption.

Moreover, private banks would be accountable for issuing a digital yen in the experiments. However, the likelihood of other entities tasked with the issuance will also be embraced. Nevertheless, they won’t ignore the possibility of other entities issuing the digital currency at the time. Particularly considering the coronavirus outbreak, the Japanese authorities actively promoted more adoption of cashless transaction methods. Nevertheless, there are still difficulties impeding the progress of digital payments in the nation.

By 2021, the Bank of Japan (BOJ) intends to test the Central bank digital currency (CBDC). However, it will only drive one when it detects a dire need for it. Japan’s three largest banks, Sumitomo Mitsui Financial Group Inc, Mizuho Financial Group Inc, and Mitsubishi UFJ Financial Group Inc have each started their digital payment. They plan to commence operating together with tech companies such as SoftBank Group unit PayPal to accomplish the mission.

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