- Mitsubishi UFG Financial Group has finally set another deadline for its stablecoin after missing the previous ones.
- It plans to launch MUFG Coin later this year that can be used effortlessly by everyone.
- The coin almost launched during 2018 and 2019 but failed on both occasions.
Mitsubishi UFG Financial Group has finally set another deadline for its stablecoin after missing the previous ones. It plans to launch MUFG Coin later this year that can be used effortlessly by everyone. MUFG president Hironori Kamezawa stated that they also plan to launch the digital currency for retail payments on smartphones as well. The Japanese financial institution is closely working with the Recruit Group since 2015 to enable peer-to-peer transactions.
MUFG Digital Currency pegged 1:1 with Japanese Yen
The blockchain-based stablecoin pegged against the Japanese Yen at a ratio of 1:1. The coin almost launched during 2018 and 2019 but failed on both occasions. The coins will first roll out to the users of the financial group before the public launch. The transactions will enable at Jalan, the travel website, and the restaurant booking site Hot Pepper Gourmet.
The major circumstances under which the digital currency will come into existence are the pandemic and an already unstable financial system. It plans to promote remote paperless offices with the help of a blockchain network.
Stablecoins offer a sense of security
Cryptocurrencies, backed by assets, provide for safer transactions and investments in digital assets. MUFG Coin will have lesser volatility as compared to other coins as they backed by fiat currency. Various banks will act as depositories of the fiat currency as the tether realized off-chain.
The test phase will go live for 100,000 account holders as well as selected merchants in Tokyo as well. The settlement, smart contracts, remittance are all activities that the financial institution plans to cover via its stablecoin.
Japanese CBDC might be on the policy roadmap
Bank of Japan has exclaimed that the demand for cashless money has increased since the outbreak of the coronavirus pandemic. Moreover, it will be beneficial if the digital currency released by a national bank that will offer security to its services. Japan plans to closely monitor the development of a central bank digital currency for smoother cross-border payments and remove several financial barriers.