MUFG Bank To Introduce MUFG Coin This Year In Effort To Build Smartphone Digital Payment Apps
MUFG Bank To Introduce MUFG Coin This Year
Mitsubishi Financial Group Inc., a large-scale banking entity, announced that it will be releasing a MUFG coin at the end of the year. The bank may be releasing the coin to compete with an increase in IT firms creating smartphone applications for the purpose of digital payments.
The MUFG coin has been in development since 2017 and it uses blockchain technology to mitigate the need for large computers for record data maintenance, thus decreasing operational costs. The coin also enables the company to provide users with lower commission charges when it comes to various financial transactions.
The bank’s CEO, Kanetsugu Mike, reportedly shared with Ashai Shimbun, “I would like to offer unprecedented new value.” Using a smartphone application, users can withdraw bank account funds. The funds are then converted into MUFG coins, in which one coin is equivalent to 1 yen. The rate is fixed to reduce fluctuations.
MUFG indicates that the intent of the stablecoin is to allow users to “use the currency to make payments at places like restaurants, convenience stores, and other shops,” as well as to “transfer the currency to other participants’ accounts.”