Mitsubishi UFJ Financial Group or MUFG, The fifth largest bank in the world plans to issue its own digital currency in the second half of 2020.
Started in 2015, The digital currency project was originally developed to run on a blockchain network and enable instant peer-to-peer transactions. After several delays, the initiative will now be implemented by 2020 at the latest, reports Cointelegraph Japan on July 13.
“We believe that everyone can use it openly”
Hironori Kamezawa, President and CEO of MUFG, announced the new plans on Monday to local news agency Mainichi Shimbun. As part of the upcoming launch, MUFG is reportedly planning to launch digital mobile retail payments based on digital currencies in collaboration with its partner Recruit Group.
According to the message, Kamezawa said that nearly 1 million Recruit member stores have already signed up for this collaboration. “We believe that everyone can use it openly”The CEO added that the MUFG token will also be available for non-recruitment businesses in the future.
The MUFG token is bound 1: 1 to the Japanese yen
As previously reported, the MUFG token is designed as a stable blockchain-based currency that is 1: 1 pegged to the Japanese yen. The start of the MUFG token has been delayed several times since the project began about five years ago. The bank would have tried to launch the token in 2018 and 2019.
MUFG is the largest financial company in Japan. It was supposed to be the first Japanese bank to issue a digital currency. In September 2019, MUFG participated in a $ 14 million investment round for the token issuance protocol supported by Coinbase, Securitize, along with Banco Santander and Nomura Holdings.