Users will be able to withdraw money from their bank accounts into an app on their smartphones. The money will be converted at a rate of one MUFG coin to CNY 1.
The MUFG coin system will work much like prepaid electronic money, such as Suica, already widely used in Japan. However, users will be able to remit MUFG coins to others through the internet at a low commission.
The bank is also developing automatic teller machines to enable consumers to withdraw MUFG coins onto their phones, the Japanese newspaper said. The ATM is expected to be rolled out by spring 2018, and will also enable users to change MUFG coins into cash.
Over the past year numerous Wall Street firms, led by Goldman Sachs, have declared their commitment to pursuing blockchain as a potential revolutionary technology for tracking and clearing financial transactions.
The blockchain technology works by creating permanent, public ledgers of all transactions that could potentially replace complicated clearing and settlement systems with one simple ledger.
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