After several months of speculations about its proposed release date, the largest Japanese bank, known as Mitsubishi UFJ Financial Group Inc, finally announced that it has some plans to launch its in-house digital currency Coin, that we waited for so long.
What is the real point of the Coin?
According to some reports, the group president, named Mike Kanetsugu said that the firm has the intention to rollout Coin before the end of this year. According to him, MUFJ is going to lean on businesses which include retail outlets and restaurants to adopt Coin, with the intention to achieve wider adoption, which will result in connected economic blocs.
Moreover, he revealed that Coin is going to enable the different participating business to find our previously unavailable information related to their customer bases, to serve them much better.
MUFJ, which is right now the fifth largest bank worldwide, during the last year, announced the plan of launching a digital currency in 2019, to solve a lot of operational problems which affect the firm. The rationale behind the launch and development has been that the expense included in procuring, storing, as well as transporting physical coins, together with banknotes, was becoming unsustainable in the Japanese notoriously cash-dependent economy.
It is also going to be recalled that during February, it was reported that JP Morgan has launched its own digital currency, which was dubbed JPM Coin, aimed to set more than $6 trillion worth of daily payments between the clients.
Unlike JPM Coin, the Coin has a higher intention of fundamentally changing how the consumers from Japan are interacting with money. Speaking about the launch, Kanetsugu has expressed his full confidence in the ability of this digital currency to accomplish what is supposed to in a crowded field.
Digital currencies a way to cut costs connected to physical coins
In what actually becomes the theme in Japan as the country is seeking to modify consumer habits away from cash ahead of Tokyo 2020 Olympics, MUFJ has made the decision that digital currencies were a way to cut the costs connected with the physical currencies, as well as incorporate a few new benefits and functions. Kanesugu even believes that the sheer weight of the financial infrastructure of MUFJ is going to be enough to persuade businesses to adopt the Coin.
Starting in September of last year, the bank also launched a Coin test run at an employee-only convenience store that turned out to be successful. The financial behemoth previously indicated that Coin is going to have instantaneous transfer capabilities and also the capacity to process micropayments in the decimal value increments.
Additionally to the authentic functionality as a digital currency backed by a bank, Coin is going to be integrated with the new mobile app of MUFJ which is going to allow users to manage all of their credit cards in just one place. This application is also going to permit its users to manage their reward point services, and platform different other managerial functions. It is even expected to be released by the end of June of this year.
MUFJ is the first major financial institution examining the possibilities of launching digital currency token
According to the group president, the rollout of MUFJ of Coin is in the same line with its purpose of building an organization which is actually relied on, as well as trusted globally and represents innovation too.
While on the surface, the adoption of digital currency bears out the sentiment, it could also be essential to note that MUFJ is by no means the primary significant financial institution to at least examine the chances of launching an in-house digital currency token.
It was also reported about the plethora of CBDC or Central Bank Digital Currencies which are right now under consideration or also in development. Despite the outpouring of promise and optimism, this world is still going to wait to see a successfully mainstreamed digital currency which operates with the full support of the existing financial system, as well as regulators.
This was especially emphasized by the daunting reality of the cash-heavy corporate, as well as customer culture of Japan that even the government is struggling to make a dent in.
The jury is still very much out on whether Coin is going to be a success or not; however, if anyone attempts this experiment in the third largest economy of the world, it will probably be its largest bank. The world’s attention is on Japan without any doubt.