Japanese banks create cash-backed cryptocurrency

A consortium of banks and organizations in Japan has begun developing a single cryptocurrency for digital payments. The new tokens will be backed by real bank deposits.

In total, the consortium that develops and approves the cryptocurrency consists of 74 companies and banking institutions. According to Reuters, the project will start in the second half of 2022, but the first tests of the system can be carried out before the end of this year. DCJPY, as the new cryptocurrency was tentatively named, will allow large-scale money transfers between companies.

The digital asset will be built on the basis of the national currency – the Japanese yen. The participants of the project are three largest banks in Japan and some big companies.

It is expected that the launch of the new crypto will contribute to an increase in the popularity of non-cash payments in the country. Now Japan is one of the countries with the largest number of cash payments – banknotes and coins.

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