Some of Japan's main banks, led by the Mizuho Financial Group, have finalised a plan to launch their own digital currency, J Coin, to cut down on cash dependence.
The new currency will be convertible into yen and will be used to make payments and transfers through a mobile phone app for free, a Mizuho spokesperson told EFE.
The main aim of J Coin is to cut down Japan's dependence on cash, which accounts for 70 per cent of its transactions, the highest percentage among developed countries, where the usage of cash has been reduced to about 30 per cent on an average.
The launch of J Coin would have positive effects on the Japanese economy as it will reduce the costs of handling cash and will cut down on settlement fees, the spokesperson added.
Mizuho and other financial groups have already held a meeting with Japan's financial regulator to study the feasibility of the project that they aim to implement at the national level by 2020.