Japan’s Mitsubishi UFJ Financial Group or MUFG is planning to launch its own cryptocurrency called MUFG Coin by 2019, reports said. The fifth-largest bank in the world by assets is planning a large-scale trial that will involve nearly 100,000 account holders who apply to take part.
MUFG Coin is designed to offer currency functionality, especially for retail purchases. In the test, an app will be installed on participants’ smartphones that converts their deposits into the digital currency. One MUFG coin is said to be worth 1 Japanese yen.
According to local news outlet NHK, the participants in the test will be able to use the currency to make payments at places like restaurants, convenience stores and other shops, and also to transfer the currency to other participants’ accounts.
The bank’s initial plan to launch a crypto coin dates back to 2016. MUFG president Nobuyuki Hirano earlier said the bank was trying to overcome issues of virtual currencies and create a highly useful currency.
MUFG is also said to be considering cooperation from other banks in its digital efforts.
Meanwhile, a consortium of other Japanese banks including Mizuho Financial Group and Japan Post Bank are said to be planning to launch their own digital currency called the J-Coin in time for the Tokyo Olympics in 2020. The project is in the early stages, and the banks held study meetings with other institutions.