A conglomerate of Japanese banks are ready to launch a new national digital currency in a bid to wean citizens off cash, the Financial Times reports.

The FT says that a conglomerate led by Mizuho Financial Group & Japan Post Bank plans to launch the new digital currency in time for the Tokyo 2020 Olympics.

The new project, which has the support of Japan's central bank & regulators, aims to develop tech to allow Japanese people pay for goods & services with their smartphone.

Cash currently represents 70 percent of all transactions by value in Japan but such a heavy cash reliance incurs costs for banks & governments. Banks must pay to handle, transport, & audit large amounts of cash, while governments risk losing tax revenue to undocumented cash-in-hand work or black market dealings.

The group of banks estimate that the adoption of a new digital currency could add ¥‎10 billion ($90 million; £67 million) to the economy, the FT reports. J-Coin will be exchanged at a one-to-one rate with yen.

A number of European economies are moving towards a cashless society thanks to the success of digital payment methods: physical cash in circulation has declined by 27 percent since 2011 in Sweden thanks to the reputation of digital payments; Denmark wants to allow shops, as well as restaurants, gas stations, & clothing stores, to stop taking cash; The Bank of Korea has said it is aiming for a cashless society by 2020; & cash is now in the minority in Britain.

The move towards cashlessness in the Nordics has been helped by the popularity of payment applications like Swish in Sweden & MobilePay in Denmark, while the increase of contactless payments through debit & credit cards has helped in Britain.

Japanese banks are not on their own in looking to develop their own digital currency. Leading banks as well as HSBC, Barclays, UBS, & Santander are developing a "Universal Settlement Coin" to make trade amongst themselves stress free, inspired by the success of digital currencies such as bitcoin.