Japan’s largest bank MUFG is working on designing a permissioned blockchain and its own cryptocurrency MUFG Coin in partnership with US-based Tech company Akamai.
MUFG creating own Blockchain & MUFG Coin in partnership with Akamai
The investment banking arm of Japan’s largest bank Mitsubishi UFJ Financial Group (MUFG), the Bank of Tokyo Mitsubishi UFJ is planning to trial a cryptocurrency called MUFG Coin next year.
With over $2.6 trillion in assets, MUFG is one of the largest banks in the world that will carry out a large-scale trial which will be among 100,000 of its retail banking customers.
The local Japanese media sources have confirmed of the “MUFG Coin” plans. US-based Akamai Technologies is the bank’s partner in this venture that is working together to design a permissioned blockchain.
In a joint press release, both the organizations’ shared their ambitions with this project:
“[We plan] to realize the world’s most scalable and fastest payment processing platform with a capacity to process a million transactions per second and the ability to finalize transactions in less than 2 seconds.”
Scheduled for 2019 release, the project aims to be compatible with IoT among other new technologies.
Working towards a stable and more useful cryptocurrency
When it comes to the participation, the account holders will have to apply for the trial. The selected participants will be enabled to install a smartphone app that will convert their fiat yen deposits in the bank accounts into MUFG Coins. The conversion rate of these coins will be 1 MUFG Coin for every 1 Japanese yen.
This currency will allow the users to make payments at convenience stores, restaurants among other shops along with transferring it to other participants’ accounts.
After conducting successful experiments among its employees for over a year, this currency will be tested with 100,000 users to ensure its efficiency and security.
Reportedly, MUFG is also planning to target the users of existing prepaid electronic money platforms along with encouraging its users to exchange these coins with foreign currencies at lower commission rates.
According to a local report, after the bank started experimenting the coin among its employees last year:
“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 (international) transaction.”
Nobuyuki Hirano, the CEO of MUFG has shared his enthusiasm previously for creating their own crypto believing it to be more stable than bitcoin which in Bank’s part is aiming to overcome the volatility issues.
MUFG is not new to the crypto or blockchain field, the banking giant is also a member of the R3 banking consortium, has invested in one of the biggest crypto exchanges Coinbase, and worked on other blockchain projects with IBM as well.
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