This is specifically not what this is. Banks in Japan have a central role in the economy so the govt has no wish to remove the ability of banks to create money

This is specifically not what this is. Banks in Japan have a central role in the economy so the govt has no wish to remove the ability of banks to create money (they are also have a lot of political power). The digital currency will be backed by bank deposits, and the aim of this appears to be creating a interbank payments system that can run with lower costs.