Testing of automated processing for digital currency issued on blockchain
Testing of automated processing for digital currency issued on blockchain: A currency with high compatibility for blockchain transactions
KDDI, au Financial Holdings, WebMoney and DeCurret will conduct a joint-project between February 18, 2020 and February 28, 2020 to test the digital currency to be issued on a blockchain. The joint-project is aiming to identify and resolve issues for commercialization, by issuing digital currency on blockchain to verify the business processes concerning issuance, distribution and disposal, and the settlement process using smart contracts (Note 1).
■ Background of the joint-project
Many projects using the blockchain have commenced recently, creating the need for settlement methods that are highly compatible with blockchain business transactions.
KDDI, au Financial Holdings, and WebMoney are promoting the smart money concept (Note 2), and have been conducting research on new services utilizing FinTech. KDDI invested in DeCurret in July 2019 (Note 3), and the joint-project is an effort aligned with the purpose of the investment, i.e., “promotion of digital currency business and creation of new value in customer experience.”
■ Overview of the joint-project
1. Implementation content
The joint-project will use a platform for issuance and management of digital currency on the blockchain being built by DeCurret for testing the issuance, distribution and disposal of digital currency.
WebMoney, a subsidiary of au Financial Holdings and a registered fund transfer service provider, will issue digital currency for the joint-project, which will be distributed to the joint-project participants (Note 4) through KDDI to be used for settlement at cafes.
2. Joint-project content
The project will test the technologies for maximizing automation of series of business processes including issuance and distribution of the currency and conversion to legal currency through settlement of proceeds at member shops. It will also examine smart contracts that execute processes in accordance with set terms and conditions.
＜Joint-Project Overview: Digital Currency Workflow＞
■Roles of Parties
Request WebMoney to issue digital currency and distribute the issued currencies.
- au Financial Holdings
Overall progress management for the project.
Issue digital currency to be used for the joint-project as the registered fund transfer service provider. Also dispose of issued currencies at the conclusion of this project.
Provide the platform that enables issuance/management of digital currency, and the smart phone settlement application to be used for the joint-project.
KDDI, au Financial Holdings, WebMoney and DeCurret will continue the review on utilization of the platform and promotion of digital currency issued on blockchain based on the findings of the joint-project.
(Reference) Features of DeCurret Platform
The platform built by DeCurret is equipped with functions that allow user companies to issue unique digital currencies, with capacity to install processes using smart contracts. It improves the efficiency of transaction processes, and is capable of handling small amount transactions for less cost in real time.
This platform will support wide range of services that utilize features of blockchain such as dynamic pricing and real time settlement.
DeCurret aims to commercialize the platform, and intends to continue increasing the range of services that improve the convenience of digital currencies such as transfer of value to existing settlement services, and exchange functions and services.
(Note 1) Framework for automating various processes related to transactions such as money transfer and settlement
(Note 2) Concept for providing comprehensive smart phone-centric settlement/financial experience through Group company collaboration
(Note 3) Press release dated July 11, 2019: Investment in virtual currency exchange service provider DeCurret
(Note 4) Participation in the joint-project are expected to be closed to third parties.