Consortium of Japanese firms to test launch digital currency – Nikkei

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  • Consortium consists of Japan’s 3 mega-banks – Nikkei
  • Goal is to distribute digital currency late 2022 – Nikkei
  • Initiative could have an effect on BOJ’s experiment on CBDC

TOKYO, Nov 24 (Reuters) – A consortium of roughly 70 Japanese firms, together with the nation’s three mega-banks, will start experiments to launch a digital currency as early because the latter half of 2022, the Nikkei newspaper mentioned on Wednesday.

The digital currency shall be backed by financial institution deposits and use a standard platform to velocity up massive-scale fund transfers and settlement amongst corporations, and lower prices, the paper mentioned.

The consortium, together with Mitsubishi UFJ Financial Group Inc (8306.T), Mizuho Financial Group Inc (8411.T) and Sumitomo Mitsui Financial Group Inc (8316.T), have been assembly recurrently since final 12 months to research methods to construct a standard settlement infrastructure for digital funds.

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The three banks have every rolled out their very own digital cost techniques however lag efforts by tech firms reminiscent of ComfortableBank Group (9984.T) unit PayPay.

The initiative may have an effect on the Bank of Japan’s separate ongoing experiment for issuing a central financial institution digital currency (CBDC), as policymakers have mentioned they might work intently with the non-public sector if it had been to difficulty a CBDC.

The Japanese are essentially the most money-loving inhabitants on the earth and lots of transactions are nonetheless accomplished in notes and cash. Authorities have been, nevertheless, eager to promote cashless transactions to enhance productiveness.

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Reporting by Leika Kihara;
Editing by Chris Reese and Stephen Coates

A man walks past in front of a sign board of Mitsubishi UFJ Trust and Banking Corporation, the asset management unit of Japan's Mitsubishi UFJ Financial Group Inc. (MUFG), in Tokyo, Japan July 31, 2017. REUTERS/Issei Kato/Files

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