The MUFG coin will have parity with the Japanese yen and first will be rolled out to employees of the financial services group. The digital currency will enable standard transactions, such as shopping or transfer of money between individuals (for example, splitting of a bill after a meal or drinks), at much lower costs as compared to credit cards.
In order to use the cryptocurrency, users will have to create wallets and MUFG will handle processing of the transactions internally. The Japanese bank conducted tests to roll out the coin in 2016 and in 2017 it tied it up with cryptocurrency exchange GDAX, run by Coinbase, the online publication continues.
MUFG’s move is an expected development of the Japanese government’s push to introduce cryptocurrencies, which were legalized in 2017, into mainstream society. In 2017, the financial group started leading a consortium of banks aiming to develop a cryptocurrency, known as J-coin, in time for the Tokyo Olympics in 2020.
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