Japan’s largest retail bank, Japan Post Bank, has announced plans to issue a blockchain-based digital yen backed by deposits.
Set to be launched in 2026 for over 120 million users, the system aims to improve the efficiency of transactions.
“Our tokenised deposit currency under consideration will offer instant, transparent transactions using blockchain technology,” Japan Post Bank and DeCurret DCP said in a statement.
The move reflects a wave of domestic entities engaging with blockchain technology to improve customer offerings.
“We want to create a system that a broad range of customers can use,” said Nanaumi Hideki, a manager at the bank.
“This will allow us to create new payment methods and cultivate new markets.”
Japan Post Bank, whose shareholders include the Japanese government, will offer a new digital currency called “DCJPY,” developed by DeCurret DCP, to its depositors, the companies said in a statement.
DCJPY takes a different approach from stablecoins, which are cryptocurrencies typically pegged to a fiat currency to maintain a constant value.
Japan Post Bank’s DCJPY is a blockchain-based deposit currency fully backed 1:1 by yen.
The bank says the digital yen will also allow for faster distribution of government subsidies to citizens.
