Mitsubishi Confirms Testing Its Own Cryptocurrency

Back in February, the Bank of Tokyo-Mitsubishi UFJ (MUFG) announced its own cryptocurrency with similar attributes to Bitcoin. Now the firm has confirmed that experiments are currently taking place.

Also read: PwC to Study Blockchain Technology for Wholesale Insurance

Mitsubishi Wants Its Own Blockchain Solution

According to the Asahi Shimbun newspaper last week, Mitsubishi plans on unveiling the currency next year. There have been many reports about the financial institution testing its own blockchain solutions but according to Reuters, the project is well on its way. The bank’s spokesperson told the news outlet that there have been quite a bit of rumors floating around the media, but nothing has been officially said by MUFG.

However the firm had this to say in an emailed statement to Reuters:

Regarding the speculation in media reports, these reports are not based on any announcement by MUFG, and the details have not been decided. However, we can only say that it’s true that MUFG is conducting demonstration experiments on the ‘Coin’ within the company utilizing a blockchain technology.

Some reports have stated that Japanese users will be able to tether their bank accounts to an app to use and receive the “MUFG coin.” According to Asahi Shimbun, rates are said to be one MUFG coin to 1 yen and the system will be similar to the popular Japanese e-commerce money Suica. The paper also has stated that users will be able to remit the cryptocurrency with very low fees attached. Alongside this general information provided by the Japanese editorial, MUFG coins may also get ATMs enabling the purchase of the digital currency with a smartphone.

Mitsubishi UFJ Financial Group is one of the banks that is also a known member of the R3 CEV consortium. The company has also been working with the blockchain-based firm Chain in a recently announced partnership revealed on the company’s blog. The two businesses were working on a project that “instantly and securely issue, transfer, sell and redeem Promissory Notes in a natively digital medium.” Mitsubishi UFJ Financial Group CIO, Satoshi Murabayashi, stated:  

We are pleased to be working with Chain to explore the application of next-generation financial infrastructure that we believe could significantly enhance the experience for our clients.

The Japanese firm has its targets set on blockchain and digital currency solutions. It will be interesting to hear about how the project offers immutability and other attributes associated with most cryptocurrencies. However, the company has no interest in the original cryptocurrency Bitcoin, Naoki Taniguchi, a global innovation expert at The Bank of Tokyo-Mitsubishi UFJ Ltd told Reuters last year in San Francisco.

“It’s all about the blockchain,” he said.

What do you think about Mitsubishi creating its own cryptocurrency? Let us know in the comments below.

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