Japanese Bank Mitsubishi UFJ Financial Group to introduce its own cryptocurrency in 2019
The banking division of Mitsubishi UFJ Financial Group, Inc, with a capital of 1,711,958 million yen, has plans to start testing its cryptocurrency in the year 2019. The cryptocurrency of the bank, MUFG Coin, would be rolled out to 100,000 customers of the bank to test the feasibility and functionality of the cryptocurrency.
Ripple : Mitsubishi UFJ Financial Group, "MUFG"
MUFG Coin - New digital currency & smart contract network
— Bank XRP (@BankXRP) May 16, 2018
The account holders who participate in the testing process of MUFG Coin would be required to download an app that would allow conversion of account deposits into cryptocurrency. The coin will hold a "one-to-one value" corresponding to Japanese currency Yen. The users of MUFG coin would be able to make purchases at retail stores, food joints and can move funds to other users of MUFG coin.
The bank has made inroads into the cryptocurrency industry which has seen more players entering into the digital currency market. The Japanese unit of Yahoo had made its decision of starting a cryptocurrency exchange in March this year. DMM group, a formidable e-commerce player in Japan, has already launched DMM Bitcoin cryptocurrency exchange.DMM Bitcoin has a potential customer base of approximately 27 million clients.
With so much activity happening in the cryptocurrency space, it appears that Japan has been quite receptive to digital currencies as compared to other geographies in the world. The Central Bank is still holding all cards to its chest and exercising caution given the volatility of the cryptocurrencies. Japan’s Financial Services Agency (FSA) has bought five new rules to regulate the players who are in the cryptocurrency market as well as for wilful entrants into cryptocurrency market. Japan has come down firmly on various altcoins which seemed dubious and failed to inspire trust.
Regulations and strict vigil can thwart theft and fraud which has become a standard feature in the digital currency domain across the globe. Japan has been moving in the right direction. It is essential to promote investor education so that people do not fall prey to Ponzi schemes and fritter away their hard-earned money.
Image via Wall Street Journal