Japan’s Mitsubishi UFJ Financial Group (MUFG), the fourth largest bank in the world, will launch its own digital currency MUFG coin, local news publication Mainichi.jp reported Sunday, Jan. 14.
MUFG is the largest financial company in Japan and is set to become the first Japanese bank to issue a virtual currency, Mainichi.jp reports.
The bank had plans to develop a cryptocurrency as far back as 2016. According to Mainichi.jp, the launch date has now been finalized and is intended to take place in the FY 2018.
Based on Blockchain technology, MUFG coin will allow users to conduct instant person-to-person transactions as well as shop with lower fees.
MUFG stated the company will process all the transactions from its cryptocurrency’s network, claiming that such an approach will help improve the stability of the coin.
The bank also plans to peg one MUFG coin to one Japanese yen in order to maintain people’s confidence in the new cryptocurrency.
Another local company, the e-commerce giant DMM Group, launched its own 7-asset cryptocurrency exchange on Jan. 11, which highlights the growing level of Blockchain tech adoption in Japan.
In contrast to the governments of neighboring China and South Korea, the Japanese government has adopted a more welcoming approach to regulating the cryptocurrency market, which has likely had a positive impact on the growth of the industry in the country.