Three of Japan’s largest banking groups have signed up to participate in a study group that aims to build a “digital settlement infrastructure using valuable digital currencies”.
Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation have joined KDDI, Seven Bank, NTT, Mori Hamada & Matsumoto and JR East in participating in the initiative, which is led by cryptocurrency exchange DeCurret.
Observers include Japan’s Financial Services Agency, the Ministry of Finance, the Ministry of Internal Affairs and Communications, the Ministry of Economy, Trade and Industry and Japan’s central bank, the Bank of Japan.
“In recent years, expectations have been growing about the efficiency and convenience of digital currency settlements befitting digital society against backdrops such as businesses issuing digital currencies using distributed ledger technology and actions taken by some central banks,” DuCurret says.
“At the same time, concerns are emerging over issues including privacy protection, crime prevention measures, and technology risks. These have resulted in the needs for a direction for the realization of valuable digital currencies in Japan.
“The purpose of this study group is to examine and discuss challenges and solutions concerning digital currencies and digital settlement infrastructure, to find a consensus toward their realization, and to present a direction for standardizing services and infrastructure.”