Japanese Companies Will Issue Digital Currency For Clean Energy Certificates

A Japanese group of companies will issue digital currencies in July 2024 for transactions and completion of clean energy certificates. This was revealed by the DeCurret crypto exchange on Thursday, October 12.

GMO Aozora Net Bank will issue yen-based digital currencies, called "DCJPY", which will operate on the network launched by DeCurret.

Starting next July, DCJPY is intended to be used by telecommunications company Internet Initiative Japan (IIJ) to complete a clean energy certificate, which provides "environmental value" to energies obtained from non-fossil sources.

These companies plan to make it tradeable using blockchain technology.

The DCJPY token will be supported by bank deposits and is intended to connect with bank accounts to allow smooth transaction settlements.

DeCurret says this improves security by using the practice of "identify your customers" (KYC) and anti-money laundering (AML) in banks with blockchain ledgers that can be tracked and distinguish them from stablecoins, cryptocurrencies whose values are usually paired with fiat currencies.

DCJPY is also expected to drastically reduce payment settlement costs compared to the existing direct system and transfers.

"If cashless business entities can also become truly digital using the DCJPY network, there will be huge cost savings for all stakeholders involved in payment settlements," said DeCurret CEO Satoshi Murabayashi at DCJPY White Paper.

The launch will align Japan with other countries that have seen an increase in the number of digital currencies supported by bank deposits and blockchain technology.

DCJPY's White Paper, which was released on Thursday, said DCJPY "has high potential to coexist" with digital currencies planned by the central bank.

DeCurret has led the launch of this digital currency by seeking discussions at a consortium of Japanese companies that want to take advantage of this technology.

This consortium, which includes a mega bank Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc, has gathered periodically to learn how to build a joint settlement infrastructure for digital payments.