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The banking branch of Mitsubishi UFJ Financial Group (MUFG), the bank of Tokyo-Mitsubishi UFJ, is planning to test its internal cryptocurrency in 2019 after years of development.

As the largest bank in Japan, MUFG could become the first major financial institution in the world to deploy its own cryptocurrency after a local report from the Japanese publication NHK confirmed its intention to proceed with a far-reaching lawsuit involving up to 100,000 MUFG retail bank customers.

Account holders will have to apply to participate in the trial that will allow participants to install a smartphone app that converts their deposits to their bank account into units of “MUFG Coin”. The conversation rate of a MUFG room will be equivalent to a yen.

“They will be able to use the currency to make payments in restaurants, convenience stores and other stores”, excerpted from an excerpt from the report. & # 39; They can also transfer the currency to the accounts of other participants. & # 39;

Bank Representatives Will Evaluate Whether Settlements and Peer-to-Peer Transfers by the Application Are Safe and Effective at a Scale of 100,000 Users After Successfully Conducting Employee Internal Trials for more than a year.

As previously noted, MUFG coins will also seek to attract users of existing prepaid electronic money platforms with reduced commission fees for all payments, including international remittances. Users will also be encouraged to exchange MUFG coins with foreign currencies at airports at significantly lower commission rates.

“If the MUFG coin is used for remittances abroad, it is estimated that the commission will be reduced to less than one-tenth of that of the current cost of several thousand yen per transaction ( International) “, read an excerpt from a document. local report after the bank began issuing MUFG coins to employees on an experimental basis last year.

The bank would develop a two-way ATM machine to allow users to “pull out” MUFG coins on their smartphone or exchange cryptocurrency in Yen.

One of the largest banks in the world with more than $ 2.6 trillion in assets, MUFG first announced its intention to develop a cryptocurrency by 2015 before confirming publicly blockchain-powered early 2016.

At this point, the launch and issuance of MUFG plays are inevitable, MUFG chairman, Nobuyuki Hirano, previously pointing out that internal cryptocurrency “would overcome the problems of [existing] virtual currencies,” as volatility [to]. useful currency “.

Indeed, MUFG Coin could be sold and exchanged during the own rumor of the cryptocurrency exchanged by MUFG in the near future.

Image from Shutterstock.

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