A group of Japanese firms has revealed that they will be assisting in the development and testing of a private digital currency that might work alongside cash.
In line with a recent official report by Reuters, about 30 firms from sectors like telecoms, utilities, and retail will perform the trials within 2021.
The digital yen would be built on a standard settlement platform and issued by banks during the trials, later possibly being issued by other entities.
“We don’t want to make another silo-type platform. What we would like to do is to make a framework that will make various platforms mutually compatible,” Hiromi Yamaoka, chair of the group and formerly an executive at the Bank of Japan, told Reuters.
The Japanese overarching aim would be to encourage people within the cash-loving country to use a digital sort of money, the group added.
The Bank of Japan, which is the nation’s central bank, has also revealed that it might also work on a national digital currency and hold tests next year.