Cryptocurrencies have never lacked popularity in Japan. The new stage in the development of the crypto sphere in this country may be associated with the Mitsubishi UFJ Financial Group, and more specifically the trial of its own digital currency. The new MUFG Coin will be put to a test during a large-scale trial.
The Mitsubishi UFJ Financial Group is a Japanese bank holding which takes an important place in the financial system of the country. According to the S&P Global Market Intelligence report 2017 it takes the 5th place among the world’s largest banks by total assets which makes it the largest bank of Japan. The bank has always had a priority on working in the fintech sphere and the new project has all the chances to become a success.
MUFG Coin is the new cryptocurrency which can be called digital yen as the exchange rate of the new coin to the Japanese currency is 1:1. The bank has announced a large-scale trial by 2019. The pilot project will be aired in limited areas of the country, but the scope of the project is impressive. MUFG expects about 100,000 account holders to take part in the trial.
The trial of MUFG Coin will provide the participants with a number of opportunities. The cryptocurrency is expected to be used in restaurants, convenience stores and other shops. The money transfers between the trial participants will also be available.
MUFG conducts the trial to proof the security of the system and remedy any problems in the payment process. The bank plans to gradually increase the list of businesses accepting MUFG Coin. At the moment it is in the process of establishing partnership with the companies that will create the testing pool. The reputation and influence of MUFG will definitely help in enlarging the scale of the trial.
The crypto market of Japan is not expecting to see the immediate effect from the MUFG Coin trial. However, it may become a mover of the cryptocurrency acceptance. MUFG has enough influence to give a fresh impetus to the development of the sphere.
Mitsubishi Corporation and MUFG are also working on the usage of Ripple technology for cross-border payments. The reason that stimulated MUFG’s collaboration with Ripple is the possibility to lower time and costs of transaction settlement. This complex approach to the adoption of crypto sphere left no doubt that the bank has serious trust in cryptos.
The crypto sphere and traditional financial institutions are engaged in active interaction. What started as a serious confrontation now seems to become a mutually beneficial collaboration. The example of the MUFG Coin trial shows that financial giants understand the advantages of blockchain technology and prefer to treat it as a partner not as an enemy.