Japan intends to launch its digital currency by 2022. As reported by Reuters, the plan is to create a yen-based crypto and backed by a consortium of about 70 Japanese companies, including the country’s three main banks.
Confirmation of the Japanese initiative came during a meeting between Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group, who said they wanted to build a shared infrastructure for the consolidation of both digital payments and an alternative currency, so-called “cryptoYen”. The agreement provides for the participation of the East Japan Railway Company and the Kansai Electric Power Company. In 2020, cash accounts for about 70% of all trades in Japan.
A high percentage, for which the Tokyo government has decided to act with various projects, aimed at greater use of credit cards and online purchases. By virtue of its close link to the yen, the cryptoYen falls under the stablecoin domain. These are currencies that depend on the trend of the currency to which they are anchored and that do not suffer the price fluctuations of an independent market, such as that of Bitcoin and the like.
