Japanese companies will launch digital currencies for transactions involving clean energy

Japanese companies will launch digital currencies for transactions involving clean energy

According to cryptocurrency exchange DeCurret’s announcement on Thursday, a collection of Japanese companies will launch a digital currency by July 2024 for the trading and settlement of sustainable energy certificates.

The “DCJPY” digital currency, which is based on the yen and will be issued by GMO Aozora Net Bank, will be used on a network created by DeCurret.

From July of next year, Internet Initiative Japan (IIJ), a telecommunications company, plans to use the DCJPY for the settlement of clean energy certificates, which give energy obtained from non-fossil fuel sources a “environmental value.”

The businesses intend to use blockchain technology to enable trading of these. To ensure easy settlement, DCJPY tokens will be backed by bank deposits and linked to bank accounts.

DeCurret claims that this separates it from stablecoins, cryptocurrencies whose values are often fixed to fiat currencies, and improves security by utilizing banks’ existing know your customer (KYC) and anti-money laundering (AML) policies coupled with a traceable blockchain ledger.

In comparison to the current system of direct debits and transfers, DCJPY is also anticipated to significantly reduce the costs associated with payment settling.

According to DeCurret CEO Satoshi Murabayashi in the DCJPY White Paper, “if cashless business entities can also become truly digital by using the DCJPY network, there will be enormous cost savings for each stakeholders involved in payment settlements.”

With the introduction, Japan would join other nations that have witnessed a growth in the number of digital currencies supported by bank deposits and blockchain technology.

According to the DCJPY White Paper, which was published on Thursday, DCJPY “has a high potential for coexistence” with the planned digital currency of the central bank.

DeCurret has been leading negotiations with a group of Japanese companies eager to use the technology to develop a digital currency.

The consortium, which consists of the megabanks Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc, has been holding frequent meetings to discuss how to create a shared infrastructure for the settlement of digital payments.