A number of Japanese banks are set to launch a new national digital currency in a bid to wean citizens off cash, the Financial Times reports.
The FT says that a consortium led by Mizuho Financial Group and Japan Post Bank plan to launch the new digital currency in time for the Tokyo 2020 Olympics.
The new project, which has the support of Japan's central bank and regulators, aims to develop technology to allow Japanese people to pay for goods and services with their smartphone.
Cash currently represents 70% of all transactions by value in Japan but such a heavy cash dependency incurs costs for banks and governments. Banks must pay to handle, transport, and audit large amounts of cash, while governments risk losing tax revenue to undocumented cash-in-hand work or black market transactions.
The consortium of banks estimate that the adoption of a new digital currency could add ¥10 billion ($90 million; £67 million) to the economy, the FT reports. J-Coin will be exchanged at a one-to-one rate with the Yen.
