Japan Post Bank announced it will introduce a digital yen by the end of fiscal 2026 to make digital financial transactions more convenient for its depositors.
The move by the postal banking giant, which holds around 190 trillion yen (US$1.29 trillion) in deposits, underscores a growing trend of Japanese institutions adopting blockchain technology to streamline financial services, according to Reuters.
Japan Post Bank, partly owned by the Japanese government, will roll out “DCJPY,” a digital currency developed by DeCurret DCP, for its customers, the two companies said in a statement on Monday (September 1).
Once launched, depositors will be able to convert their yen into DCJPY for instant settlement of digital securities and other blockchain-based assets.
“Our tokenised deposit currency under consideration will offer instant, transparent transactions using blockchain technology,”
Japan Post Bank and DeCurret DCP, a subsidiary of Internet Initiative Japan, said.
DCJPY is a blockchain-based deposit currency backed 1:1 by fiat yen.
It differs from stablecoins, which are cryptocurrencies designed to maintain a fixed value by being pegged to a fiat currency.
Featured image credit: Edited by Fintech News Hong Kong, based on image by Fantastic Studio via Freepik