President Hiroki Kamezawa of Mitsubishi UFJ Financial Group (MUFG) said that there are ready customers to use digital assets in their daily operations.
Coronavirus pandemic has initiated a lot of technological advancements, especially in the financial sector. This comes as the Mitsubishi UFJ Financial Group (MUFG) reveals that the bank will issue its own stablecoin in the second half of 2020.
The Japanese bank has been pushing to develop and roll out its pin digital currency for several years now, and the goal appears close by the day.
According to the project’s details revealed by MUFG, the stablecoin will be issued in a ratio of 1:1 to Japanese Yen. This is meant to steer away from the traditional volatility experienced in most digital assets. The bank plans to work with Recruit Group, a company that operates the restaurant’s introduction site “Hot Pepper Gourmet” to reach out to more customers.
According to President Hiroki Kamezawa of Mitsubishi UFJ Financial Group (MUFG), there are ready customers to use the digital asset in their daily operations.
“We have customer contacts such as various shops and young altobytes,” said Kamezawa and expressed hope for the collaboration with Recruit. “In addition, in the future, the policy is to make it available to non-recruit site member stores as well,” added he.
Largely supported by the ongoing coronavirus pandemic, Kamezewa thinks it can never be more right to launch the project than now. “There are various delays, but since there was a new coronavirus problem, it may be just right in terms of timing.” He explained.
Such an initiative can bring onboard a huge customer base from the Japanese large population. In addition, the digital asset will be poised to compete with existing stablecoins including Tether (USDT), which has largely dominated in its field.
MUFG Stablecoin Bigger Picture
Completion of the MUFG digital coin project will be a huge welcome especially in the crypto market that trails in the policy regulations. Being a huge player in the financial industry and in a developed country, the release will largely act as a stamp of the long term dominance of existing crypto assets, mostly those with global utility cases.
MUFG began the project back in 2018 and has been postponing the date up until now. However, with the ongoing global pandemic pushing for faster transactions, frictionless and away from fiat, the bank is now projected to take over the market as it digitizes its own internal processes.
According to Japan Times, MUFG is expected to hold a minority stake in the company behind the token. 51% would be owned by its partner, human resources services provider Recruit Holdings.