Japan is planning to launch a digital currency that is backed by the Japanese yen and will be compatible with various platforms and devices. The digital currency, called DCJPY, will be issued by a consortium of banks, fintech companies, and regulators, and will aim to provide a fast, secure, and convenient method of payment and settlement.
DCJPY will be based on blockchain technology and will use a hybrid consensus mechanism that combines proof-of-work and proof-of-stake. The digital currency will have a fixed supply of 100 billion units and will be pegged to the yen at a 1:1 ratio. Users will be able to exchange DCJPY with yen or other currencies through authorized exchanges or wallets.
The project is expected to launch in July 2024, after a series of tests and trials. The project is supported by the Japanese government, which sees the potential of digital currencies to enhance the efficiency and inclusiveness of the financial system, as well as to promote innovation and competitiveness. The project is also in line with the global trend of central bank digital currencies (CBDCs), which are being explored by many countries around the world