Japanese banking giant Mitsubishi UFJ plans to issue its own blockchain-based cryptocurrency in 2017

Asahi Shimbun reported that Bank of Tokyo-Mitsubishi UFJ Ltd. plans to officially launch its own virtual currency MUFG coin in the fall of 2017 (MUFG is the abbreviation of the bank's parent company, Mitsubishi UFJ Financial Group). It will become the world's first large bank to issue its own virtual currency. The launch of this virtual currency also marks the arrival of an era in which large banks launch financial technology services based on information technology. In addition, the large customer base, perfect system and high reputation of large banks are conducive to the popularization of MUFG coin.

The virtual currency is characterized by low fees for online transactions and foreign currency exchanges.

Customers can transfer their money from their bank accounts to the mobile banking app, and the money will be automatically converted into MUFG coins. The exchange rate of MUFG coins to Japanese yen is initially set at 1 MUFG coin = 1 Japanese yen.

The operating model of MUFG coin is similar to that of a stored-value card (Suica ^[1] ) in the form of electronic currency.

This new virtual currency can simplify people's lives. Users can use MUFG coins for P2P transfers at a low fee; they can also use MUFG coins to pay for their purchases; and users can also use MUFG coins to exchange foreign currencies at the airport, with lower fees than some traditional exchange methods.

MUFG Bank also plans to launch a MUFG coins ATM in the spring of 2018, which will allow users to deposit MUFG coins directly into their mobile app (without having to go to the bank counter). This ATM will also allow users to exchange MUFG coins for Japanese yen.

In addition, the bank is in contact with some shops, hoping that they will accept MUFG coins transactions.

All transaction records of MUFG coin will be stored on the Bitcoin network - blockchain.

The decentralized data storage model of blockchain technology is conducive to reducing the operating costs of the MUFG coins system.