MUFG, one of the largest Japanese banking groups, plans to introduce a payment system powered by blockchain technology. The financial institution is also working on the creation of its own cryptocurrency, MUFG Coin, in collaboration with Akamai, an American company.
MUFG creates its own Blockchain and cryptocurrency in partnership with Akamai
Japan's largest investment bank, Mitsubishi UFJ Financial Group (MUFG), is planning to launch its own cryptocurrency called MUFG Coin in 2019. The project is expected to be scalable and " IoT compatible.(or the Internet of Things) and other new technologies. "
Local media say that MUFG account holders will have to apply if they want to participate. Also, they will need to have an application for Smartphone that will convert the deposits into the MUFG Coin . The latter will likely have a value equivalent to a yen.
A pilot project developed in parts of Japan will allow users to make payments at "restaurants, convenience stores and other stores. " This test phase will also allow the transfer of cryptocurrency one participant to another.
Careful study will ensure that payments are made "smoothly and securely," according to MUFG officials.
A more stable and useful cryptocurrency
The ambition and enthusiasm of Nobuyuki Hirano, President of Mitsubishi UFJ Financial Group, is felt through his words. He says MUFG Coin can potentially become more stable than Bitcoin. MUFG tries to "overcome problems such as the volatility of virtual currencies and create a very useful currency. "
The bank conducted a brilliantly successful survey among its employees for over a year. From now on, the cryptocurrency will be tested by 100,000 users, to ensure its efficiency and security.
MUFG plans, among other things, to target users of existing cryptocurrency platforms, while encouraging its users to exchange MUFG Coin for foreign currency currencies. The bank's commissions are minimized at best.Local media reported an announcement from the financial institution, during the MUFG Coin's experimentation within the company.
If MUFG Coin is used for remittances abroad, it is estimated that the commission will be reduced to less than one-tenth of the current cost of several thousand yen per transaction (international).This is not the first time that MUFG has entered the cryptocurrency industry. Also a member of the R3 banking consortium, he has invested in Coinbase , one of the largest crypto-stock exchanges. The banking giant has also worked on other Blockchain projects in collaboration with IBM .
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