Consortium of Japanese corporations to check launch digital foreign money – Nikkei

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

The digital foreign money will likely be backed by financial institution deposits and use a standard platform to hurry up large-scale fund transfers and settlement amongst corporations, and minimize prices, the paper stated.

The consortium, together with Mitsubishi UFJ Monetary Group Inc, Mizuho Monetary Group Inc and Sumitomo Mitsui Monetary Group Inc, have been assembly frequently since final 12 months to review methods to construct a standard settlement infrastructure for digital funds.

The three banks have every rolled out their very own digital fee methods however lag efforts by tech corporations equivalent to SoftBank Group unit PayPay.

The initiative may have an effect on the Financial institution of Japan’s separate ongoing experiment for issuing a central financial institution digital foreign money (CBDC), as policymakers have stated they might work carefully with the personal sector if it have been to problem a CBDC.

The Japanese are probably the most cash-loving inhabitants on the planet and plenty of transactions are nonetheless accomplished in notes and cash. Authorities have been, nevertheless, eager to advertise cashless transactions to extend productiveness.

(Reporting by Leika Kihara; Modifying by Chris Reese and Stephen Coates)



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