Japan Post Bank said it would launch a digital yen by the end of fiscal 2026 to make it more convenient for its depositors to make digital financial transactions.
The move by the postal giant, which holds roughly 190 trillion yen ($1.29 trillion) in deposits, highlights a growing wave of domestic entities tapping blockchain technology to streamline financial transactions.
Japan Post Bank, whose shareholders include the Japanese government, will introduce “DCJPY,” a digital currency developed by DeCurret DCP, for its depositors, the two companies said in a statement on Monday.
Once introduced, Japan Post Bank’s depositors can convert their yen into DCJPY for instant transactions of digital securities and other blockchain-based assets.
DCJPY is different from stablecoins
“Our tokenized deposit currency under consideration will offer instant, transparent transactions using blockchain technology,” Japan Post Bank and DeCurrent DCP, which is an arm of Internet Initiative Japan, said in the statement.
DCJPY is a blockchain-based deposit currency that is fully backed 1:1 by fiat yen. It is different from stablecoins, a type of cryptocurrency designed to maintain a constant value by being pegged typically to a fiat currency.
($1 = 147.3300 yen)