A consortium in Japan is preparing to launch a yen-backed cryptocurrency in 2022.

 

It is the most recent project of the banking system of Japan. By creating a virtual currency that follows the movement of the yen, the Japanese government is trying to gauge the ability of the population to adapt to digital currencies, despite the country remaining firmly committed to cash payments.

Purpose of Japanese cryptocurrency and its support

The project, which aims to create a digital currency linked to banking services and daily life in Japan, has gained support from the country's largest companies. In the daily life of a Japanese lambda, this means that he will be able to convert his yen into DCJPY when he goes to the bank.

The objective of the effort is to make the daily life of its users easier by allowing them to pay for a variety of services (transport, administrative, and banking) using this digital currency. A total of 70 companies use this payment method, including the powerful East Japan Railway and banks like the Mitsubishi UFJ Financial Group.

The majority of Japanese, almost eighty percent, still prefer to pay cash in stores. This statistic reflects people's attachment to paper money and their fear of cryptocurrency. The new coin will enter a testing phase in the second half of 2022, according to the Japanese government.

The DCJPY is a stable coin that does not yet have a name

Despite its long-term ambitions, the DCJPY is not yet labeled a stable coin in its white papers (published on the occasion of the launch of a cryptocurrency). Stable coins, or crypto-currencies indexed to the price of a traditional currency (such as the dollar or the euro), are currencies that are not subject to high volatility. As a result, they are ideal for everyday life.

It is important to point out that China and the United States have already developed such cryptocurrencies. It is therefore a currency whose value is controlled by banks but whose operation is carried out on a blockchain whose nature remains to be determined. This can be good news for lovers of new technology and cryptocurrencies in particular.

Source: engadget