Japan’s Biggest Bank to Carry Large-Scale Trial of Cryptocurrency ‘MUFG Coin’

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The banking arm of the Mitsubishi UFJ Financial Group’s (MUFG), the Bank of Tokyo-Mitsubishi UFJ, is reportedly planning to trial its in-house cryptocurrency in 2019 following years of improvement.

As Japan’s largest financial institution, MUFG might grow to be the world’s first main monetary establishment to deploy its personal cryptocurrency after a neighborhood report by Japanese publication NHK confirmed plans towards a sweeping trial involving as many as 100,000 MUFG retail financial institution prospects.

Account holders may have to apply to participate within the trial which can allow contributors to set up a smartphone app which converts their fiat yen deposits of their financial institution accounts to items of ‘MUFG Coin’. The dialog price of one unit MUFG coin will likely be equal to one yen.

‘They will be able to use the currency to make payments at places like restaurants, convenience stores and other shops,’ an excerpt from the report learn. ‘They can also transfer the currency to the accounts of other participants.’

Bank officers will assess whether or not settlements and peer-to-peer transfers via the app are safe and environment friendly at a scale of 100,000 customers after conducting successful in-house trials among employees for over a yr.

As reported beforehand, MUFG cash may also look to usher in customers of current pay as you go digital cash platforms with low fee charges levied for any funds, together with worldwide remittances. Users may also be inspired to trade MUFG cash with foreign exchange at airports at markedly decrease fee charges.

‘If MUFG coin is used for abroad remittances, it’s estimated that the fee will likely be lower to lower than one-tenth of that of the present price of a number of thousand yen per (worldwide) transaction,” learn an excerpt from a neighborhood report after the financial institution started issuing MUFG cash to workers on an experimental foundation final yr.

The financial institution is reportedly growing a two-way ATM machine to permit customers to ‘withdraw’ MUFG cash onto their smartphone or trade the cryptocurrency into yen.

One of the most important banks on the earth with over $2.6 trillion in property, MUFG first introduced plans to develop a cryptocurrency as early as 2015 earlier than publicly confirming the blockchain-powered coin in early 2016.

At this stage, the launch and issuance of MUFG cash is an inevitability, with MUFG president Nobuyuki Hirano beforehand stressing the in-house cryptocurrency would “overcome issues of [existing] virtual currencies” like volatility “[to] create a highly useful currency”.

Indeed, MUFG Coin may very well be bought and exchanged at MUFG’s own rumored cryptocurrency exchange someday within the close to future.

Featured picture from Shutterstock.

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