Japan Post Bank (OTCPK: JPSTF) announced plans to introduce a digital yen by the end of fiscal 2026 to streamline digital financial transactions for its depositors, according to a Tuesday report.
Digital Yen Or Stablecoin?
The financial giant, whose shareholders include the Japanese government, will introduce “DCJPY,” a digital currency developed by a Japanese digital currency startup DeCurret DCP, Reuters reported.
The blockchain-based deposit currency is fully backed 1:1 by fiat yen, although it is different from stablecoins. Once introduced, the bank’s depositors can convert their yen into DCJPY for instant transactions of digital securities and other blockchain-based assets.
The bank also plans to allow its clients to use the digital currency to buy assets like real estate, corporate bonds and non-fungible tokens, reported The Japan Times.
See Also: Trump Family-Backed World Liberty Financial Token Crashes After Initial Rise On First Trading Day
Japan’s Crypto Moves
The move by Japan Post Bank comes in the wake of significant developments in Japan’s cryptocurrency landscape.
The country was on the verge of approving its first yen-denominated stablecoin, backed by liquid assets such as deposits and government bonds.
Additionally, reports emerged that Japan’s market regulator was preparing to propose a revision to the nation’s tax code, which includes shifting cryptocurrency gains to a separate tax category with a flat 20% tax rate, similar to regular capital gains taxes.
The regulator also planned to introduce a legislative bill to categorize cryptocurrency as a "financial product" under the Financial Instruments and Exchange Act.
US Says Yes To Stablecoins, No To CBDCs
Significant developments have also happened in the U.S. regarding fiat-backed digital currencies.
The GENIUS Act, which aims to establish the first regulatory framework for issuers of dollar-pegged stablecoins, has been signed into law. On the other hand, the House of Representatives passed the Anti-Central Bank Digital Currency bill, which prohibits the Federal Reserve from issuing a centrally controlled digital dollar.
Price Action: The bank’s shares finished at $12.77, up 0.87% in over-the-counter trading on Friday, according to data from Benzinga Pro.
The stock’s price trend was strong in the short, medium and long term as of this writing. Visit Benzinga Edge Stock Rankings to check out the performance of the top banking stocks on Wall Street.
Photo Courtesy: structuresxx on Shutterstock.com
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
