The rapid advancement that has been made in the field of digital currency by China has alarmed other countries such as Japan. Now three big banks from the country are coming together along with a crypto exchange, DeCurret to study digital currencies and a unified infrastructure for digital payments. They would study the benefits of a common settlement system, in order to promote cashless transactions as it is the need of the hour especially after the COVID-19 outbreak which has disrupted the traditional payment methods.
The three banks Mitsubishi UFJ Financial Group Inc, Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc. Other non-financial entities are taking a robust interest in this development too and East Japan Railway is participating in the discussion . The meetings would be organized a couple of times every month and the responsibility of that lies on a cryptocurrency exchange DeCurret. Financial institutions such as the ministry of finance and representatives from the bank of Japan too would also attend the meeting from an observing point of view.
The involvement of a crypto exchange such as DeCurret to bring these major institutions under one room speaks volume about the interest the country has in finally turning towards a cashless and a crypto payment system. Japanese is one of the primary users of fiat and haven't made similar advancement in digital payments as other major countries. The group would look to figure ways to promote more digital adoption in the country as the countries do possess digital systems but the people are reluctant to use them. They would look to address the issues that prevent people from using it as a preferred form of payment and hope that they develop a framework which instils confidence in them. If the study proves successful Japan would take a major step towards digital and crypto adoption.
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