MUFG or Japan’s Mitsubishi UFJ Financial Group (MUFG) is set to become the first ever Japanese bank to issue a digital currency.
MUFG is Japan’s largest bank following the January 1 2006 merger of UFJ Bank Ltd. and the Bank of Tokyo-Mitsubishi Ltd.
Considered as the world’s fourth largest bank, MUFG will be releasing its digital MUFG coin.
Plans of a cryptocurrency has long been floated in MUFG since 2016. Most recently, the date of MUFG’s coin launch has been set this year.
The MUFG coin allows users to do immediate person-to-person transactions as well as receive lower fees when shopping.
MUFG stated it will be processing transactions from its own cryptocurrency network. Doing so, according to MUFG, will help stabilize the coin’s currency.
MUFG is also planning to peg a single MUFG coin to a single Japanese yen in order to help establish people’s confidence in the said cryptocurrency.
DMM Group, a large e-commerce company, similarly launched its seven-asset cryptocurrency exchange last January 11. Such moves further highlighted the increasing adoption of Blockchain technology in Japan.
Compared to China and South Korea, Japan has a more open approach to cryptocurrencies as its focus is on regulating the market.
MUFG has plans to have its digital coin received via a mobile application in order to allow it to make instant P2Pmoney payments and transfers at any affiliated stores. Users of MUFG’s cryptocurrency will also have reduced fees compared to currencies found on other virtual payment platforms.
MUFG intends to keep the value of its digital coins relatively stable as it plans to control its generation and distribution.
MUFG’s head office is located in Marunouchi, Chiyoda, Tokyo. It currently has more than 700 offices in different parts of Japan. MUFG has 76 offices located all over the world.