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2020-11-20

Japan: experiment with the use of digital yen

The three largest Japanese banks, which are part of a group of 30 private sector entities, intend to cooperate on the experiment with the digital yen. The group includes banks, various Japanese brokerage houses, utilities and telecommunication companies and retailers, according to the Reuters report published on November 19.

For the purpose of the experiment, private banks will be responsible for the issue of the yen, although it is not ruled out that other entities may be involved in the issue, according to the chairman of the new group, Hiromi Yamaoka. Yamaoka is a former head of the Japanese central bank, who himself has been speaking more and more loudly about the development of the digital yen in recent months.

Japan is known for its slow acceptance of non-cash payments. Cash still accounts for about 80% of all settlements in this country, compared to 55% in the United States and only 30% in China.

Leading Japanese banks, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group have already developed individual digital payment systems, including digital tokens.