30 Largest Financial Institutions will Accommodate Central Bank in Testing Digital Yen
Different tech firms are willing to test digital Yen in Japan as the central bank is planning to launch a pilot test for the state digital currency in 2021.
As reported by Reuters, the companies and firms that are willing to take participate in the launch of digital currency include the three largest banks, retailers, and brokerage firms. According to the given information, the pilot project will start in 2021.
Race for Digital Currency
Due to the onset of the Coronavirus pandemic, the need for a digital currency has increased and tech giants also want to see digital Yen that can be used across the platforms in the country. What’s more, there is a need for cashless payments, which is an attempt to contain COVID from proliferating. Hiromi Yamaoka, former bank executive, stated,” Japan has many digital platforms, none of which are big enough to beat cash payments.”
Yamaoka says that the purpose of the project is to invite all entities on one platform. There will be no need for a company to create a separate platform with its own cryptocurrency project as all private digital entities can access a single platform for operations in digital currency.
For testing and issuing of digital yen, the largest banks of the country are supervising the project. Companies and firms who are not included in the digital yen project can initiate their own cryptocurrency projects for issuing digital Yen.
Recently, the central bank of Japan announced to make experiments for the issuance of state-backed digital currency. The digital currency will not replace cash money but will complement it in making the financial system more advanced.
To give it a practical shape, the Bank of Japan has established a division of participants. According to the announcement, the digital Yen will be announced by the start of the next year. The country has accelerated its efforts of launching a state digital currency because central banks of other countries are making significant efforts in the digital sector. For instance, China is close to revealing digital yuan for public use soon.
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