Japanese companies are joining forces to introduce a digital currency called DCJPY, set to launch by July 2024. This digital currency is specifically designed for clean energy certificate transactions and will operate on DeCurret’s blockchain-based network.
In this initiative, GMO Aozora Net Bank will be responsible for issuing DCJPY, with Internet Initiative Japan (IIJ) using it for settling clean energy certificates. DeCurret will facilitate these DCJPY transactions, with the network being backed by traditional bank deposits, leveraging blockchain technology. This approach mirrors the use of digital currencies supported by bank deposits and blockchain technology in other countries.
This development has been made possible in part due to the Revised Funds Settlement Act of 2022, which officially recognizes stablecoins as a new electronic payment method. As a result, banks, trust companies, and transfer operators are now permitted to issue stablecoins. Binance, a cryptocurrency exchange already licensed to serve traders in Japan, has been qualified as an issuance partner. Other companies can also issue stablecoins once they receive approval from the Financial Services Agency of Japan for their license applications.
In addition to this, Mitsubishi has introduced the Progmat platform in alignment with the Revised Funds Settlement Act. This platform supports the issuance of stablecoins backed by the Japanese yen and the US dollar. Businesses can use this technology to simplify foreign trade transactions and acquire digital securities and non-fungible tokens (NFTs).
Motoki Yoshida, the marketing manager of TOKI, a Progmat partner, explained that this system involves financial institutions depositing an equivalent amount of fiat currency with MUFG’s trust bank to issue stablecoins. The funds in the trust bank are insulated from bankruptcy risks, making these stablecoins among the most secure options for use on public blockchains.
The adoption of such innovative technologies by more businesses has the potential to revolutionize how transactions are conducted, possibly propelling Japan to the forefront of digital currency adoption.
