Leading Japanese Bank holding and Financial services firm Mitsubishi UFJ Financial Group (MUFG), which is also the fifth largest bank in the world declared that it is going to keep cryptocurrency MUFG to practical use in 2019. The token will run on bank's blockchain, which came into existence after years of effort to provide the advantages of blockchain to payment systems.
The token was initially conceptualized in 2016 and started development in 2017 are generally meant for digital payments in retail space. Users have the option to convert their fiat into digital tokens which can be later used for payment at retail stores. Apart from this, you can also exchange these tokens with other users.
The token was formed with the main purpose of decreasing fees in transfers and for use in the remittance world. The demonstration and practical tests were also being conducted. The bank has taken part in a pilot program which has kept a syndicated loan of $150 million on the blockchain. UFG is anticipated to be implemented in the last 6 months of 2019.
Kanetsugu Mike, who is the freshly appointed MUFG president has declared about the new rollout in an interview with local media agency Asahi Shimbun. MUFG is the biggest financial firm in Japan and in the future, it might become the first company in Japan to launch a virtual currency. It is basically a blockchain based stablecoin pegged 1:1 to the Japanese yen.
The asset is developed by keeping in mind the current requirements, where customers have to download the app which will systematically convert their bank deposits into a stablecoin.
Based on Cointelegraph Japan, around 1,500 company employees have taken interest in testing MUFG coin since 2017.
"I would like to offer unprecedented new value," Kanetsugu Mike informed Asahi Shimbun.
According to the report shared by Cryptoground in May 2018, MUGF showed its interest to test MUFG coin with almost 100,000 account holders in 2019.
The bank's main purpose behind this initiative is as follows,
"Potentially this coin could have large-scale commercial potential, as well serving small-scale retail bank customers. Other than MUFG coin, MUFG is testing another untitled digital currency rewards [program] for employees who reduce their overtime hours and practice a healthy lifestyle."
Japan is accepting cryptocurrency similar to other nations in the world. For instance, Rakuten to soon release its Crypto Exchange and popular chat-app Line has also released its own cryptocurrency and blockchain.