- The consortium includes the 3 mega-banks of Japan - Nikkei
- The goal is to distribute the digital currency by the end of 2022 - Nikkei
- The initiative may affect the BOJ 's experience on CBDC
TOKYO, November 24 (Hfrance.fr) - A consortium of around 70 Japanese companies, including three mega-banks in the country, will begin experiments to launch a digital currency as early as the second half of 2022, the Nikkei newspaper announced on Wednesday.
The digital currency will be backed to bank deposits and will use a common platform to speed up large-scale fund transfers and settlement between businesses, and reduce costs, according to the newspaper.
The consortium, including Mitsubishi UFJ Financial Group Inc (8306.T) , Mizuho Financial Group Inc (8411.T) and Sumitomo Mitsui Financial Group Inc (8316.T) , have been meeting regularly for the past year to study ways to create a common settlement infrastructure for digital payments.
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The three banks have each deployed their own digital payment systems, but the efforts of tech companies like SoftBank Group are lagging behind (9984.T) unit PayPay.
The initiative could affect the Bank of Japan's on-going separate experiment for issuing a central digital currency ba (CBDC), as policymakers have said they will work closely with the private sector if it issues a CBDC.
The Japanese are the more cash-loving global population and many transactions are still carried out in banknotes and coins. However, the authorities were keen to promote cashless transactions to increase productivity.
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