The Mitsubishi UFJ Financial Group of Japan, the world’s largest financial consortium by assets, is experimenting with its cryptocurrency, the so-called MUFG Coin. The Mitsubishi UFG’s crypto token is being used in convenience stores exclusively for group employees, but the consortium plans for a more far-reaching payment program with its crypto by 2019, involving 100,000 users, reports the Japanese daily Sankei Shimbun.
The test is already underway at a convenience store for employees only, located at the MUFG headquarters in Tokyo. As reported, the experiment is “quietly progressing,” a conclusion the Sankei Shimbun’s journalists reached after witnessing how the MUFG Coin functions.
The purchase process is straightforward, conducted through an optical reader. The cashier in the store scans the QR code projected on the screen of the buyer’s smartphone, which corresponds to their MUFG Coin digital wallet, and the system transfers the amount of the purchase in cryptocurrency to the store’s portfolio.
MUFG Coin is paired with Japanese Yen at a 1:1 ratio
While the MUFG Coin is in its trial stage and cannot be used for payments at other establishments, it can be useful among the same holders when agreeing on payments among themselves. An example mentioned in the publication refers to the co-payment of a bill at a bar or restaurant. If one Mitsubishi UFJ Financial Group’s worker pays a tab at a restaurant in cash, the others can transfer the appropriate MUFG Coin amount to his/her wallet.
As for the technical details surrounding this cryptocurrency, there is still no information available on what type of blockchain the MUFG Coin is using or any plan to list it at on any cryptocurrency exchange platform.
However, what the Mitsubishi UFJ Financial Group made clear is that the value of the MUFG Coin is tied to the value of the Japanese Yen in a 1:1 ratio, that is, 1 MUFG Coin equals to 1 yen at the time of making a payment. They argued that this strategy could counteract the volatility often associated with these types of digital assets.
