Oct 12 Reuters A group of Japanese firms will issue a digital currency by July 2024 for the transaction and settlement of clean energy certificates, cryptocurrency exchange DeCurret said on Thursday.

GMO Aozora Net Bank will issue the yenbased digital currency, called DCJPY, which will operate on a network launched by DeCurret.

From next July, DCJPY is intended to be used by telecommunication firm Internet Initiative Japan IIJ for the settlement of clean energy certificates, which assign an environmental value to energy procured from nonfossil fuel sources.

The companies plan to make these tradable using blockchain technology.

DCJPY tokens will be backed by bank deposits and are intended to link with bank accounts to enable the seamless settlement of transactions.

DeCurret says this improves security by using banks39; existing know your customer KYC and antimoney laundering AML practices alongside a traceable blockchain ledger and distinguishes it from stablecoins, cryptocurrencies whose values are typically pegged to fiat currencies.

DCJPY is also hoped to drastically lower payment settlement costs as compared to the existing system of direct debits and transfers.

If cashless business entities can also become truly digital by using the DCJPY network, there will be enormous cost savings for all stakeholders involved in payment settlements, DeCurret CEO Satoshi Murabayashi said in the DCJPY White Paper.

The launch would align Japan with other countries that have…