The fifth-largest bank in the world, in terms of total assets, and noted to being one of the most influential private banks – Mitsubishi UFJ announced it’s entry into the Cryptocurrency space.
Japan Times highlighted the president of the Mitsubishi UFJ Kantsugu Mike, noting that Mitsubishi will launch its own Cryptocurrency called ‘coin.’ The announcement is part of the bank’s initiative of technological improvement aimed at increasing confidence, security, and efficiency in the organization.
Banks Bending towards Cryptocurrency
The latest trend between banks and digital currencies are Central Bank Digital Currencies also known as CBDC’s. CBDCs can be defined as the digital form of a fiat currency of a particular nation issued and regulated by the monetary authority of the country.
Mitsubishi UFJ follows the footsteps of banking giants such as JPMorgan developing its own token called JPM Coin. JPM Coin’s primary use case is for r settling more than $6 trillion worth of daily payments between clients.
Mitsubishi UFJ’s Cryptocurrency History
September 2018 marked the Coin test run at an employee only successful convenience store. Thus ensuring that Coin could be the way forward not only for the Japanese bank but Japan as a whole.
Another advantage is that the Japanese bank already makes use of Ripple to process transactions.
Steven Diep tweeted on September 3rd, 2018 about Ripple’s advantage over SWIFT.
MUFG explaining how Ripple's solution help them reduce operating costs between their 50 branches around the world. #ripple #efficient #settlement #ripplenet #XRP pic.twitter.com/xAr00xpgtr
— Bull Diep (@DiepSanh) September 3, 2018
Along with this Mitsubishi UFG owns three-quarters of the fifth largest bank in Thailand Krungsri Bank which also utilizes Ripple.
Coin is said to roll out before the end of 2019 and could help change the overall impact of how the Japanese perceive digital currency. With the Tokyo Olympics next year, the country could become a freer place for tourists and locals to spend lavishly through Cryptocurrency.