Japan’s MUFG bank to launch own cryptocurrency

The banking wing of Japan’s MUFG (Mitsubishi UFJ Financial Group) plans to test its own cryptocurrency as early as 2019.

According to a report by report by Cointelegraph Japan, the world’s fifth-largest bank will be the first to introduce its own digital currency.

Cointelegraph Japan cites local news outlet NHK.

The report states that a testing phase of the new cryptocurrency, called the MUFG Coin, will involve around 100,000 account holders.

Mitsubishi UFJ Financial Group is currently the fifth-largest bank in the world by assets and originally hinted at its plans to launch a token by early 2018.

Plans for MUFG to launch its own crypto stem as far back as 2016, Cointelegraph reported at the time.

The MUFG Coin is designed first and foremost to offer currency functionality.

Customers who test the new coin will be able to download an app that will convert their deposits automatically.

One MUFG will be equal in value to one yen, according to NHK’s report.

According to the report, users “will be able to use the currency to make payments at places like restaurants, convenience stores, and other shops.”

Account holders will also be able to “transfer the currency to the accounts of other participants.”

The bank joins a growing swathe of significant Japanese entities developing encroachments into the cryptocurrency industry.

Headlines regarding exchange sector have dominated in 2018, with names such as DMM and Yahoo! at various stages of crypto development.