Japan Launches Digital Currency To Process Clean Energy Certificates

According to a news report from Reuters, crypto exchange DeCurret announced on October 12 that a group of Japanese companies, including Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group, will band together to launch a digital currency by July 2024. This currency will be utilized for the exchange and settlement of clean energy certificates.

According to DeCurret, GMO Aozora Net Bank is set to introduce a digital currency denominated in Japanese yen, known as “DCJPY.” Subsequently, it will be utilized by Internet Initiative Japan (IIJ), a telecommunications company. Moreover, the DCJPY transactions will take place on a network introduced by DeCurret, while on contrary to stablecoins, is underpinned by bank deposits facilitated through blockchain technology.

Back in February 2022, global digital asset platform Amber Group announced the acquisition of DeCurret Inc. The new ownership powered Amber Group’s debut in the Japanese market with a registered Crypto-Asset Exchange Service Provider (CAESP) sanctioned by the Japan Financial Services Agency (FSA).

The Reuters article also highlighted that the launch of the digital currency will push Japan par with other nations experiencing a rise in the prevalence of digital currencies supported by bank deposits. In July, the Bank of Japan joined hands with 60 companies as part of a pilot program aimed at creating a digital yen.

The partnership will feature conversations encompassing a range of subjects, including the commercial and technological aspects associated with retail transactions involving a central bank digital currency (CBDC), as stated by the central bank.

Meanwhile, in the last week of September, the Japanese Crypto Asset Business Association (JCBA) declared an initial set of rules designed to revamp the processes related to initial exchange offerings (IEOs) and initial coin offerings (ICOs) within Japan’s cryptocurrency market.

Genki Oda, Chairman of JVCEA emphasized that IEOs have previously proven to be a fresh means of financing for Japanese investors. He further appreciated JCBA’s endeavors to establish regulations, noting that IEOs and ICOs serve as an indication of the future potential of Japan’s Web3 market.