Japan's largest bank began testing its own stable coins

Japan’s largest bank began testing its own stable coins

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Mitsubishi UFJ Financial Group, the largest bank in Japan and one of the largest financial conglomerates in the world, has begun closed trials of its MUFG Coin stable coins.

We already wrote about the fact that MUFG plans to launch its own cryptocurrency. Some of these promises remain promises, but the Japanese do not throw words to the wind.

As previously reported, MUFG Coin is a stable coin tied to a yen at a rate of 1: 1.

The goals of the experiment are declared quite restrainedly “to study the possibilities of using blockchain for financial purposes, including a wide range of everyday financial transactions and payments.”

MUFG does not plan to refuse bills and coins, but complains that their production, transportation and storage cost a lot. But digital stable coins, in the opinion of the company, has great potential, first of all it concerns retail customers and their transactions.

There are not so many details, even the local press, with which bankers decided to share this information, only reports that “the trials are gradually moving forward.”

The testing range is a small store in the headquarters of MUFG, where only the company’s employees are being bred. In addition to shopping in the store, employees can also use MUFG Coin in their calculations.

In addition to stable coins, the scope of which can be expanded, MUFG also tests a corporate security token, which name is not disclosed.

The essence of the new digital asset is to serve as a unit in the system of incentives and bonuses for employees “who work less overtime and lead a healthier lifestyle.”

However, the Japanese are obviously modest – the experiments for sure lie more than the intention to reduce costs and increase the speed of transactions or taking care of the healthy lifestyle of employees.

Back in January 2018, when the plans for the launch of its own crypto coins were first announced, MUFG announced that it had applied to the Financial Services Agency (FSA) for opening a cryptocurrency exchange, on which the new asset should be traded.

And let the situation with the issuance of new licenses in Japan so far stalled, the plans of MUFG look impressive. Own digital asset and cryptocurrency exchange at one of the largest financial structures of the world with the appropriate resource – this can be very promising.

Against this background, even such large fish like Rakuten or LINE, which bear their own plans of a similar orientation, look quite modestly.

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