Tuesday, December 7, 2021
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Japan Banks Mull Digital Currency Backed By Bank Deposits

The Japan Digital Currency Forum has launched a white paper analyzing the potential of a brand new cryptocurrency backed by financial institution deposits.

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  • The discussion board consists of over 70 firms, together with the nation’s prime banks resembling MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank, Japan Post Bank, amongst others. Several authorities businesses are also a part of the venture, with the nation’s finance ministry and central financial institution performing as observers.
  • The digital forex, quickly referred to as DCJPY, can be issued by business banks as their liabilities. The forex can be backed by financial institution deposits and never bear curiosity, the white paper notes. Users can be allowed to mint the forex by withdrawing deposits from their financial institution accounts and posting the equal quantity in DCJPY to a digital forex account.
  • The white paper describes the digital forex platform as two-tiered — it has a “Common Area” the place easy transactions are recorded on the blockchain and a “Business Process Area” for sensible contract transactions. According to the white paper, DCJPY is predicted to foster innovation, scale back value and enhance the effectivity of digital funds.
  • The discussion board is exploring a variety of use-cases for the forex together with safety tokens, retail funds, industrial settlements and non-fungible tokens, amongst others. The consortium is hoping to roll-out DCJPY by the latter half of 2022. In the meantime, the discussion board will take a look at the digital forex beginning as early as this 12 months.
  • In the meantime, Japan’s central financial institution is exploring the feasibility of its personal central financial institution digital forex. The CBDC venture is presently in its proof-of-concept section whereas the federal government carries out a number of research to determine the technical particulars in addition to its financial affect.

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Tuesday, December 7, 2021

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