Financial encyclopedia

"Digital currency" has become a key topic in financial experiments across countries. Japan not only has the Digital Yen led by the central bank but also the JPYC stablecoin issued by private companies. Both are based on the Japanese yen, yet they represent completely different development paths. 

Digital Yen: The Central Bank's Version of Electronic Money 

Issued by the Bank of Japan, it is positioned as the electronic version of cash. 

It enjoys the full trust of the government. 

Its main uses include small payments, cross-border settlements, and facilitating government supervision of capital flows. 

The characteristics are safety and stability, but the pace of advancement is relatively conservative. 

It can be regarded as "electronic banknotes" with extremely low risk. 

JPYC: Digital Yen of Private Innovation 

Issued by the Japanese company JPYC Co., Ltd., it is a stablecoin pegged to the Japanese yen. 

It is mainly used in e-commerce scenarios and can be applied to shopping vouchers, game points, and even some DeFi platforms. 

It is highly flexible and has diverse applications, but the source of trust relies on the company's asset guarantee, and its scale is limited. 

It is closer to a "digital payment tool" or "electronic points" rather than an official legal tender. 

Core difference: Trust vs. Efficiency 

Digital yen: Safe and reliable, backed by national credit, but the pace of innovation is relatively slow. 

JPYC: Flexible and adaptable, always at the forefront of the market, but its credibility still lags behind that of the central bank. 

The former is a "stable orthodox currency", while the latter is an "experimental payment token". 

Three modes 

The American model: privately led (USDT/USDC), consolidating the hegemony of the US dollar. 

The Chinese model: Official monopoly (Digital RMB), challenging the status of the US dollar. 

The Japanese model: dual-track system of official and private sectors (Digital Yen + JPYC), hoping to restore the presence of the yen. 

Digital yen represents national credit, while JPYC stands for market efficiency. The two both cooperate and compete, which is a microcosm of Japan's financial experiment. 

In the future, who will truly represent the "yen", the central bank or the private sector? 

Can the Japanese yen regain its footing on the international stage through digitalization, or will it ultimately be marginalized by the US dollar and the Chinese yuan? 

This cryptocurrency cold war has only just begun.