As the world continues towards digitisation, much has been made of the idea of future currency. For some, cryptocurrency like bitcoin is the future. For others, moving established minted currencies into purely virtual spaces is the next big step. The country of Japan is moving towards the latter.
Reported by Nikkei, Japan is attempting to move its currency into the digital world. Much like cryptocurrency, the country will start moving to a blockchain-based way of controlling its legal tender.
How is Japan using e-currency?
The country has already started a test run of its proposed e-money future. This test will include 70 huge Japanese companies as well as the country's top banks. At the moment, the digital currency can only be used for “low-cost business transactions”.
Nikkei notes that the test includes companies such as “MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank, Japan Post Bank, Nippon Telegraph and Telephone group and Mitsubishi Corp”. The countries national Bank and Financial Services Agency will oversee the test.
The new currency has been given the name DCJPY: Digital Currency Japanese Yen. Using a mixture of blockchain and bank ledgers, the currency aims do be secure, easy to use and no fuss.
Read More: Robot poet will perform an AI generated follow up to Dante’s Divine Comedy
Accessible to the Japanese public
The report claims that DCJPY will enter proper circulation in the second half of 2022. Once it enters circulation, Japanese individuals will be able to open new digital accounts to use DCJPY. However, the Japanese government has not stated how tangible cash money will be converted. Additionally, it’s not known what will happen to paper money that is currently in circulation.
In order to make the digital currency as easy to use as possible, DCJPY will be transferable up to a single Yen. That's the equivalent of around $0.001. Furthermore, those who dislike using the digital currency can swap it back into cash money whenever they like.
It’s not known how many years it will take Japan to phase out physical money if the upcoming test is successful. However, some reports claim that it will take at least ten to fifteen years to successfully phase out the use of physical money. Whatever happens, coin collectors are gonna be upset.
Read More: Ethics of Artificial Intelligence agreement has been adopted by 193 countries