Bank MUFG Will Put Stablecoin To Practical Use In 2019
Mitsubishi UFJ Financial Group (MUFG), Japanese bank holding and financial services company which doubles as the fifth largest bank in the world, is set to put its digital currency MUFG Coin into practical use this year. Testboo got a hint of the news today 9th April.
News of the planned rollout was revealed by the newly-appointed MUFG president Kanetsugu Mike in an interview with local media agency Asahi Shimbun.
MUFG is the largest financial company in Japan and is prospectively set to become the first Japanese bank to issue a virtual currency, specifically a blockchain-based stablecoin pegged 1:1 to the Japanese yen.
The asset is designed with a focus on currency functionality, with customers to download an app that will automatically convert their bank deposits into the stablecoin.
Approximately 1,500 company employees have participated in trialing MUFG Coin since 2017.
Kanetsugu Mike reportedly told Asahi Shimbun “I would like to offer unprecedented new value,”
The bank reportedly intends that users “will be able to use the currency to make payments at places like restaurants, convenience stores and other shops,” as well as to “transfer the currency to other participants’ accounts.”
In late December 2018, another Japanese banking giant Mizuho Financial Group announced its own plans to launch a bespoke digital currency for payments and remittance services.
Japan is notably already served by digital payment innovators such as e-commerce giant Rakuten, which will soon launch its own crypto exchange.