Japan Post Bank to Mint Digital Yen via Private Blockchain in 2026

Japan Post Bank, the nation's largest financial institution, has announced plans to issue a yen-backed digital currency in fiscal year 2026, which begins in April 2026. The initiative aims to leverage Japan’s vast savings pool, estimated at $1.3 trillion, by introducing a digital version of the yen called DCJPY. This digital currency will operate on a private blockchain developed by DeCurret DCP Inc., a subsidiary of Internet Initiative Japan, and will be fully backed by deposits held at a regulated financial institution. The move is designed to offer instant settlement for transactions involving digital securities and other assets, with the potential to expand into digital identity and NFTs in the future [1].

The digital currency will function by linking users’ DCJPY accounts directly to their savings accounts at Japan Post Bank, ensuring a one-to-one exchange rate with the yen. This design provides users with the flexibility to convert DCJPY back into traditional yen using a mobile application. The digital currency will also benefit from deposit insurance protection, offering an additional layer of security to users. The bank has emphasized that it hopes local governments will adopt DCJPY in the future for the distribution of subsidies and other benefits, expanding its utility beyond the financial sector [1].

The initiative marks a significant step in Japan’s broader exploration of digital currency, with the Bank of Japan currently assessing the feasibility of a national central bank digital currency (CBDC). The BOJ has been conducting a multi-phase pilot program to evaluate factors such as transaction speed, system security, and offline payment capabilities. While no final decision has been made regarding the issuance of a national CBDC, the insights gained from these trials are informing the design and regulatory framework for a potential digital yen. Japan Post Bank’s DCJPY could play a complementary role by providing real-world data on user adoption and transaction efficiency [2].

Japan Post Bank’s digital currency initiative is expected to enhance the accessibility and efficiency of financial services for both individuals and businesses. By enabling near-instant transactions and integrating with a private blockchain infrastructure, DCJPY aims to modernize traditional banking processes. The bank has partnered with DeCurret DCP Inc., which has been developing digital currency platforms since 2020, to ensure the technological robustness and scalability of the system. This collaboration underscores Japan’s commitment to leveraging blockchain technology to enhance the financial ecosystem [2].

The launch of DCJPY in 2026 represents a strategic move to tap into Japan’s substantial deposit base while addressing the growing demand for digital financial solutions. As the global financial landscape continues to evolve, Japan’s approach to digital currency demonstrates a balance between innovation and regulatory caution. The initiative also aligns with broader international trends, where countries are exploring the use of digital currencies to improve payment systems and financial inclusion. Japan’s efforts could serve as a model for other nations looking to integrate digital assets into their financial systems [2].

Source: [1] Japan Post Bank to Issue Digital Currency in FY 2026 (https://www.nippon.com/en/news/yjj2025090100934/) [2] Japan Post Bank to launch a yen-backed digital currency in ... (https://crypto.news/japan-post-bank-to-launch-a-yen-backed-digital-currency-in-2026/)