Until now, there has been a lot of discussion and research into digital currencies by the financial industry, but reports coming from a national newspaper in Japan, The Asahi Shimbun, suggest that things may be moving faster than they first appear. It is suggested that Japan’s largest bank, the Bank of Tokyo-Mitsubishi UFJ Ltd., will be launching its own digital currency, to be known as the MUFG Coin, as soon as 2017. Such a big step represents the first such coin launched by a global bank, and it could have wide ranging effects on the cryptocurrency industry.
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Japan’s largest bank, the Bank of Tokyo-Mitsubishi UFJ Ltd., is reportedly planning on launching its own digital currency during 2017. This would make it the world’s first global bank to offer a cryptocurrency product of its own, and would be a landmark in the development history of digital currencies and the industry itself.
The currency, which in reports emanating from prominent national newspaper The Asahi Shimbun states that it will be dubbed “MUFG Coin”, an acronym for the parent company of the bank itself, Mitsubishi UFJ Financial Group, is due to launch in autumn 2017. The bank sees the use of digital currency as a tool to facilitate currency conversion for customers, enabling it to offer low commission charges for conversions to the local fiat currency, the Yen. This would be a slightly different kind of cryptocurrency however, entirely in private hands and with a value that is tied to the value of the yen itself, where one MUFG is equal to one Yen.
The system will also utilize app based payment systems for use in stores, offering a convenience and ease of use beyond existing digital payment solutions, to provide a broad reaching solution that includes everything needed, from app payments to currency conversions all within one financial ecosystem.
Some may think yet another digital currency is an issue, however this is a solution backed by a global bank, and brings with it an inherent trust where financial stability is concerned. A closed system such as this is not the answer for the broader digital currency industry, and indeed, a fragmented solution made up of various versions of this would not be healthy, however, it does present the cryptocurrency industry with an opportunity. Recognition and trust from the public is hard to win for anyone, and this will be a way for industry operators to achieve both from the user experience and publicity that this new cryptocurrency will provide.