Japan’s Largest Bank To Trial Own Cryptocurrency In 2019

News | May 18, 2018 By:

Japan-based Mitsubishi UFJ Financial Group (MUFG), the world’s fifth-largest financial institution, is planning to test its own cryptocurrency, called MUFG Coin, as early as 2019.

MUFG Coin, which was first announced in 2016, is a cryptocurrency that customers will be able to use to make mobile payments in restaurants, convenience stores and other shops, as well as make transfers to the accounts of other participants. The exchange rate of the cryptocurrency will be equal to one Japanese yen.

MUFG is reportedly planning a ‎large-scale trial involving nearly 100,000 account holders.‎ It is currently in the process of teaming up with companies to create the testing pool. The bank will be conducting the trial to proof the security of the system and remedy any problems in the payment process.

MUFG has been exploring ways to leverage the power of blockchain technology. In August 2017, the bank joined UBS’ “Utility Settlement Coin” consortium project, which aims to develop a cryptocurrency for clearing and settling financial transactions.

The bank is also working with Ripple’s interbank group Global Payments Steering Group ‎‎(GPSG) to test moving real funds over RippleNet, Ripple’s enterprise blockchain network.‎