Japanese Companies Think About Digital Yen

A number of Japanese companies are thinking about issuing a universal cryptocurrency that will meet all the requirements of business and private users. The plans include development as soon as possible and test the new product as early as 2021. This desire coincides with the plans of the Central Bank of Japan for 2021, to develop and integrate the digital yen.

Japan is a technologically advanced and innovative country, but despite this it makes extensive use of traditional cash. According to Hiromi Yamaoka, who previously served as executive director of the Bank of Japan, there is no centralised control system for monetary payments with multiple digital platforms for transactions. Japanese companies expect that the situation will change in the near future and the digital yen will appear in 2021. Hiromi Yamaoka also explained that the plans are not to create another platform of a disparate type, but to create a system that will make the various platforms compatible with each other. Participating companies plan to use cryptocurrency as a liaison to provide a common method of settlement. The group includes companies working in the field of telecommunications, and brokerage companies.

In light of the coronavirus pandemic, the Japanese authorities are actively supporting non-cash transactions. But despite this, there are still a number of shortcomings hindering the development of digital payments in the country. The Bank of Japan (BOJ) plans to test the central bank's digital currency (CBDC) in 2021, after which, after weighing the pros and cons, considering the functionality and relevance, will make the final decision on the launch.