Japanese Firms To Test A Bank-backed Cryptocurrency In FY 2022

According to a report by Reuters, Japan is involved in the development of a bank-backed digital currency with a consortium of around 70 Japanese firms.

According to them, the digital currency would be a Yen-based cryptocurrency and the project is called “DCJPY.” The whole initiative will be backed by three of the country's biggest banks.

Big names of the consortium are Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc. At a news conference they have mentioned, they have been in meetings for this project for a while.

For the past few years, cryptocurrencies have become immensely popular among people. From Elon Musk's Bitcoin acceptance to China's Crypto ban, the price of the crypto market has been tumultuous. Despite its importance and ease of use, countries, and authorities are still in confusion about its legalization. One of the main reason authorities are skeptical about it is, no one can control the ups and downs of the price as it runs on blockchain technology. However, if Japan could be able to make a sustainable, bank-backed digital currency, it might be a significant step towards digital currency and can change the way of digital payment.

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