Japan to launch 'digital yen' in 2026

Japan Post Bank, one of the largest financial institutions is preparing for a bold leap in digital economy.

According to Reuters, Japan will launch its new digital currency next year. The Japan Post Bank issued a statement on Monday September 1, 2025, stating that it would introduce its digital currency next year.

The Japanese giant bank will roll out its digital currency, as 'digital yen’, in fiscal 2026.

Moreover, the new DCJPY is developed by Tokyo-based digital currency firm DeCurrent DCP.

As of the latest digital development, Japan said digital currency will make it more convenient for depositors to make digital transactions.

The move by the Japanese post bank which holds roughly 190 trillion yen in deposits, highlights a growing wave of domestic units, tapping block chain technology to streamline financial transactions.

This active decision is perceived as the strategic effort to mobilize colossal inactive savings and provide a new generation of investors with simple access to digital resources.

Once launched, depositors will be able to convert yen into digital technology, the Post bank Japan will also immediately connect traditional savings accounts directly to DCJPY wallets.

This calculated move will enable more users to exchange yen to digital money immediately via mobile application, which is one of the steps towards quicker and more dynamic trading experience.

Moreover, $1.3 trillion in deposits targeted, aiming to active dormant accounts and attract young users for more digital transactions.

Furthermore, digital yen will support security tokens and NFTs, which enable fastest settlements and boosting overall fintech innovations.

The Japan Post bank informs that a DCJPY account will be linked to a depositor’s saving account with 1 DCJPY equivalent to ¥1 yen, so that price stability and easy integration with the organized banking structure is maintained.

Additionally, users can convert DCJPY back into yen using an app, informs JP bank.

The Bank also hopes that local governments will use the digital currencies to provide subsidies and other benefits in the future.

JP Banks believes that with this new service, settlement times are expected to be shorter than the conventional transaction methods.

“We will be able to provide a new payment method and develop the market," a Japan Post Bank official said.