Central bank digital currencies (CBDCs) are gradually ensuring their places in respective national economies. Though resistance still exists based on privacy and authority-like factors, the fiat-backed CBDCs are making their way. Similar news was received from Japan where the company behind creating yen-backed CBDC dubbed DCJPY announced the tentative launch date.
Decurret Holdings, a Japan-based digital currency, and electronic payments company, released a white paper for DCJPY on October, 12th. The paper noted key insights of the project that it expects to launch by July 2024.
The expected detail of DCJPY Network’s structure, as outlined in the white paper, will consist of two primary zones: the Financial Zone and the Business Zone. In the Financial Zone, banks will play a role in minting deposits as digital currency on the blockchain.
Meanwhile, the Business Zone will be dedicated to various types of transactions and will serve as a space for issuing non-fungible tokens (NFTs), security tokens, and governance tokens. This dual-zone approach is designed to facilitate and organize different aspects of the network’s operations.
The primary issuer of the DCJPY, backed by Japanese yen deposits, will be Aozora Bank, a commercial entity with 19 domestic branches in Japan. In 2021, DeCurret reported on a consortium of 70 Japanese companies participating in the DCJPY Network.
The white paper does not specify the names of network participants. However, DeCurret itself is supported by 35 shareholding companies, with notable names such as Japan Post Bank, Mitsubishi, and Dentsu Group among them. These established entities contribute to the network’s credibility and stability.
The claims of DeCurret seem highly optimistic as they do not coincide with the country’s central bank, the Bank of Japan. BOJ conducted a central bank digital currency experiment and released the result of its second phase in May this year. With the pace of the bank, it was indicated that a digital yen might be possible after a decision in 2026.
Asia Holding Majority Part of CBDC Waves
Western parts of the globe did not take much enthusiasm in the initial race towards central bank digital currencies. Caribbean countries took the lead in the field and launched their CBDCs earliest. In the next stage, a majority of Asian countries are in a position to push the digital currency forward.
As Atlantic Council data shows, other than 11 launched CBDCs, about 21 digital currency projects are in the pilot phase. As the map shows, the majority of these countries fall in Asia. Countries like India, China, Japan, etc. are holding up the lead as their CBDC projects are going on.
The United States is at the development stage of its CBDC project. It took several steps forward as commencement measures but it’s not going at a similar pace as the other parts of the world.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/12/dcjpy-cbdc-creator-optimist-for-digital-currency-launch-by-2024/