Some of Japan’s largest banks have formed a study group the explore options for developing a digital payment system that will use digital currencies in Japan.
The study group will comprise participants from three megabanks (Mizuho Bank, Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation) and major Japanese companies, experts, among others.
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The goal of the study is to investigate ways of “building digital settlement infrastructure using valuable digital currencies in Japan,” the group said in a statement.
“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 realisation, and to present a direction for standardizing services and infrastructure,” said Japanese cryptocurrency exchange DeCurret, which is hosting the study group.
Regulators are watching
In recent years, DeCurret noted, 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.
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By GlobalDataAt 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 realisation of valuable digital currencies in Japan, DeCurret said.
Regulators are keeping an eye on the project. Both the Bank of Japan (BoJ) and the Financial Services Agency (FSA), will participate as observers, alongside representatives from government departments, including Finance and the Ministry of Economy and Internal Affairs.
Concerns about the safety of cryptocurrencies may not altogether be surprising. Japan experienced firsthand two of the worst ever exchange hacks – Mt. Gox and Coincheck. Exchanges now need a license from the FSA before they can operate legally in the country.
The group will hold its first meeting this month and will meet once or twice monthly until September. It will then release a report summarising the discussions.
