Japan Post Bank has announced its plan to issue a digital currency backed by deposits for individual and corporate clients in fiscal 2026.
Following this announcement, the digital currency is set to be linked to depositors’ savings accounts, provide instant settlement for purchases of digital securities, as well as other assets.
In addition, Japan Post Bank aims that local governments will also leverage the digital currency in order to provide secure and efficient subsidies, as well as other benefits for customers and businesses in the future. The institution is set to continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
More information on Japan Post Bank’s strategy to launch digital yen in 2026
According to Reuters, Japan Post Bank, whose shareholders include the Japanese government, will introduce `DCJPY`, a digital currency developed by DeCurret DCP, for its depositors. The currency will be subject to deposit insurance protection, as a DCJPY account will be linked to a depositor's savings account, with 1 DCJPY equivalent to JYN 1. Users can convert DCJPY back into yen using an app. Furthermore, the digital currency will leverage blockchain technology for security.
By the end of fiscal 2026, Japan Post Bank aims to give customers the possibility to use the digital currency in order to purchase small-lot assets such as real estate and corporate bonds, as well as financial products such as nonfungible tokens (NFTs). At the same time, the initiative is set to make settlement times shorter than with the use of conventional transactions.
