The Mitsubishi UFJ Financial Group`s (MUFG) Bank of Tokyo-Mitsubishi UFG has reportedly started issuing MUFG coin, its own digital currency that is av
The Mitsubishi UFJ Financial Group`s (MUFG) Bank of Tokyo-Mitsubishi UFG has reportedly started issuing MUFG coin, its own digital currency that is available for the bank`s employees.
As the publication noted Japan`s biggest bank may become the world`s first financial institution to develop and use its own digital currency. The development trials of the cryptocurrency began in 2015 before the bank publicly confirmed the pilot testing.
The bank has started issuing its MUFG coins in-house to employees on an experimental basis this month, as the Japan News (the-japan-news.com) wrote.
“Initially it has issued MUFG coin only for its employees, and aims to expand its use to customers within fiscal 2017. This is the first time for a major Japanese financial institution to issue its own virtual currency.”, stated an excerpt from the article.
The conversion rate of one unit of MUFG is said to be equal to one yen. Users will be able to withdraw money via an app that can be installed on their smartphones.
“MUFG coin applies the encryption technology also used for the major virtual currency bitcoin. As no major facilities are needed to manage information on payment and remittances, it will result in significant cost reductions. If MUFG coin is used for overseas remittances, it is estimated that the commission will be cut to less than one-tenth of that of the current cost of several thousand yen per transaction.”, as the report added.
As previously stated, unconfirmed rumours say that the bank will issue MUFG coins commercially in Autumn 2017 (between September-December).
MUFG has worked with US-based fintech company Ripple as a member of the company`s Global Payments Steering Group (GPSG) this year. The group consists of banks coming together to support a “rules-based blockchain network” that is expected to make possible global money transfers over a blockchain by 2018.