The world's second largest bank in terms of capitalization and turnover, Mitsubishi UFJ Financial Group MUFG, plans to launch a cryptocurrency payment system in Japan early next year. For this stablecoin of MUFG Coin will be used, tied to the Japanese yen. In February, representatives of the bank confirmed their intention.
Thanks to blockchain technology, the cost of a single transaction can drop dozens of times. For the MUFG banking group, which has offices in 40 countries around the world, and owns several thousand units, this can come into enormous savings. The basis of the new payment system will be based on the stablecoin of MOOFG Coin.
Stablecoin - a fixed-rate cryptocurrency. Usually the price of a token is tied to fiat money. However, gold, oil or other financial assets can be used as a base instrument. The MUFG Coin token rate is 1: 1 against the Japanese yen.
From February 2018, employees of the corporation have been using the token for internal operations. They can buy goods for it in a specialized store or exchange them for fiat money. In this way, the corporation is testing cryptocurrency payment systems.
Compared to other companies, MUFG has almost unlimited resources. The total assets of the bank is estimated at approximately $ 2.8 trillion. It is the largest bank in the country, and second in terms of capitalization in the world. It is not strange that it was the Japanese credit institution that took up the implementation of an ambitious project to create a global of cryptocurrency payments system based on the stablebcoin.
The Mitsubishi UFJ Financial Group, Inc. banking group was established in 2005 as a result of the merger of the financial conglomerates of Tokyo and Osaka. Owns 22% of Morgan Stanley and significant stakes in smaller financial institutions. The branch network exceeds 5,000 branches.
The plans of the corporation include the creation of a cryptocurrency trust, which will be able to provide services for the storage of digital financial assets to traders. This project will be implemented after the FSA allows to use tokens as assets for a trust fund.
Another ambitious project is the creation of a cryptoexchange. However, it is still under development due to the overall market situation.
Now a large number of financial organizations are testing payment systems based on cryptocurrency. However, it is precisely Japanese companies that may be among the pioneers.
This is not surprising, since it was here that cryptocurrency was fully legalized for the first time. According to a study by Deutsche Bank, the majority of cryptocurrency traders in the world are from Japan. Indeed, after the recognition of coins as legal tender, the trading process is fully controlled by the authorities. More precisely, they created an association of cryptoexchanges.
It is noteworthy that even for Olympia 2020 in Tokyo, a stablecoin tied to the yen will be released. However, these plans have not received further development yet.