Bank of Tokyo-Mitsubishi 5th Largest Bank Prepares to Launch First Bank-Issued Crypto

Bank of Tokyo-Mitsubishi UFJ, one of the world’s five largest banks, recently confirmed it is working toward the launch of its own crypto currency launch. Mitsubishi UFJ Financial Group stated in late May of 2018 that it is conducting research on blockchain technology, and will release a proprietary cryptocurrency by 2019.

MUFG is a subsidiary of a large firm called Mitsubishi Group which deals with a variety of businesses including the making of compact disks and vehicles. MUFG also happens to be among the largest banks in Japan. Numerous reports have revealed that the bank has been developing its own cryptocurrency which it plans to launch officially if the trial run for the digital currency proves successful.

The Japanese bank will reportedly kick off the trial with 100,000 customers that registered with the bank to become participants in the trial. The bank’s digital currency will be called MUFG and its value will be equivalent to that of the Japanese Yen that is to be pegged to the Japanese Yen.

The bank will also collect data from the rollout to determine the efficiency of the cryptocurrency, especially in everyday use. This means it will be used for shopping in stores and also to facilitate bank transactions. Some of the reports about the MUFG cryptocurrency claim that the launch of the digital currency will also be accompanied by cash machines that will also be compatible with a smartphone app.

A report by Japanese publisher NHK World claims that the smartphone app will allow users to convert their deposits into the MUFG token. The launch of the digital currency will be a major step forward not only for the Japanese bank but also for the entire cryptocurrency industry since it will be the first digital currency developed by a bank. It also highlights the potential direction that banks might take in the future as far as cryptocurrencies are concerned.

Despite the reports, MUFG has not released any official announcements pertaining to the launch of the MUFG cryptocurrency.  The use of cryptocurrency and decentralized ledger technology has for some time been known to be the direction that the cryptocurrency market will take, and Mitsubishi’s involvement with this technology confirms those predictions.