- April 14, 2018
- Category: Altcoins, Business, Cryptocurrency
Cryptocurrency is growing and as such more and more people and banks alike are taking part in the cryptocurrency craze. Japan’s Mitsubishi UFJ Financial Group has now announced that they will be creating their own cryptocurrency to combat and compete with other cryptocurrencies that are already on the market. This currency will be called the MUFG coin.
The First Bank-Issued Virtual Currency
As of yet, no other banks have issued any form of cryptocurrency making this announcement one that is certainly for the books. In fact, J.P. Morgan Chase’s CEO, Jamie Dimon, went as far as calling Bitcoin a fraud (a statement he later rescinded). The bank is the first Japanese bank to issue any sort of virtual currency. The plan to issue this currency started back in 2016 but is just now entering the final stages of completion to hit the market this year.
The coin is based on blockchain technology and will allow users to conduct what they call direct person to person transactions instantly rather than having to wait for these transactions to complete over the internet as they do now. It will also allow people to shop with the use of lower fees. MUFG stated that they will personally handle all the transactions from their own cryptocurrency network which does provide a great deal more security than currently open markets. This is all in hopes that it will help to stabilize the coin and make it more appealing to more hesitant traders and investors that might have reservations about virtual currency.
What Makes This Currency Different?
MUFG has also boldly stated that they will back each MUFG coin with one Japanese yen to help keep the confidence of those that are using them to trade and those that might hope to invest in the coin in the future. Though they are the first bank to issue cryptocurrency, they are not the first large name institution to do so.
E-commerce giant DMM Group launched their own seven asset cryptocurrency exchange early in 2018. This type of confidence in the blockchain commerce technology by a giant like DMM is also going to help promote confidence in bitcoin and other cryptocurrency as well as the overall market for virtual currency.
Does this Mean Cryptocurrency is Closer to Regulation?
The Japanese government has been far more accepting and welcoming of virtual currency than any other Asian nation and has shown that they have full confidence in the technology as opposed to the governments of South Korea and China who have both gone to great lengths to either get rid of virtual currency all together or to greatly limit it and restrict it.
This is certainly a huge development and would be the first bank backed and produced cryptocurrency which is sure to raise confidence levels in those that may have had some reservations about the whole virtual market to begin with. There are no dates as of yet that have been released for the official launch but it does seem that as the time approaches, speculators are getting more and more excited. There is little that we can do but wait for the MUFG coin but it is sure to change cryptocurrency forever.