A group of the three largest banks, brokerages and retailers will participate in the digital yen pilot. The project will begin in 2021.
Efforts to create a cashless payment system in Japan have intensified this year amid the coronavirus pandemic and an increased worldwide push for government-backed digital currencies. In addition to government initiatives, corporations want to create a common digital currency platform. Hiromi YAMAOKA, a former head of the Bank of Japan who leads the new group, said the project aims to create a single platform that can be accessed in a variety of ways.
The central bank has also set up a devision for digital yen development, indicating the urgency of the issue as neighboring China is close to fully deploying the digital yuan.
According to a report by the Bank for International Settlements, 80% of the world's central banks are exploring the possibility of creating a digital analogue of their fiat currency.