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Blockchain-based banking products

04/10/2019
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As early as 2019, the Mitsubishi UFJ banking group will begin to appeal its own stablecoin. The importance of this news lies in the fact that the blockchain-based financial product will be designed for a retail consumer. This can turn the global idea of the possibility of cryptocurrency.

Japanese stablecoin MUFG

Cryptocurrency from Mitsubishi UFJ was launched into internal circulation in 2018, and since then more than 1,500 employees have been testing it. The corporation even created a special shop on its territory where it was possible to pay with tokens.

>At the second stage of testing, bank customers will be able to convert their yen deposits into MUFG tokens. They will be able to pay them in shops or cafes. It is expected that at this stage 100,000 people will join the procedure.

The new stablecoin will be provided by the Japanese yen in a 1: 1 ratio, which ensures complete safety from exchange rate fluctuations. The fifth largest bank in the world is able to accumulate such a volume of liquidity, which will be sufficient protection against any risks.

Why does the largest Japanese bank need stablecoin

It seems that the largest banking corporation in Japan could easily use the already tested financial instruments. However, its new head Kanetsugu Mike said that the new solution will be a real breakthrough in the provision of services.

In the future, the blockchain from Mitsubishi will be able to handle up to 10 million operations per second. It will be enough to provide instant service worldwide. For comparison, now the ethereum blockchain conducts 16 transactions per second, and VISA is considered the leader in the speed of operations - 17,000 transactions.

Such a technological breakthrough will lead to cheaper financial turnover. Processing services charge at least 1% of the transaction amount. Mitsubishi has already announced that they will be able to reduce the fees by an order of magnitude. Since the main expenses for conducting transactions fall on retail outlets, ordinary users do not notice these costs. However, sellers are forced to mortgage them in the price of goods.

Oracle Confirmation

The breakthrough nature of new technologies is confirmed by the words of Oracle Vice President Frank Xiong. At the Forbes CIO summit, he said that in three years more than half of the companies will use blockchain technology in their work. And it will be used not only in the financial sector.

Founded in 1977, Oracle Corporation is the second largest software developer in the world. The company specializes in business solutions.

For 2020, it is planned to launch the new international payment system Global Open Network, which will significantly change the balance of power in the financial world. The product from Mitsubishi UFJ Financial Group is initially built on the blockchain technology, and therefore uses the best opportunities for operations. It is likely that it is the new stablecoin that will become the basis of the revolutionary payment system.

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