Japanese Bank MUFG will issue a stablecoin MUFG Coin this year

Japanese banking group Mitsubishi UFJ (MUFG) plans to launch its own digital currency, MUFG Soip, this year. The stablecoin rate will be pegged to the Japanese yen in a ratio of 1: 1.

According to local media, Hironori Kamezawa, President and CEO of MUFG, said that in cooperation with Recruit Group, the Bank will release a mobile app for retail customers who will be able to pay with MUFG stablecoins for goods and services. Kamezawa said that about a million stores are ready to participate in the project, so after the launch of the cryptocurrency, everyone will be able to use it freely.

For the first time, plans to launch MUFG Soip became known in June 2016. Initially, stablecoin was intended for conducting internal banking operations, then the Bank began to consider issuing this cryptocurrency to its customers so that they could make low-cost money transfers around the world. MUFG planned to launch stablecoin in early 2019 and even started testing it with the participation of more than 100,000 customers.

However, MUFG management later reported that a final decision on the launch of the digital currency has not yet been made. At the same time, the head of the Bank of Japan, Haruhiko Kuroda, said that there is no demand for the state cryptocurrency in the country, so he does not see any prerequisites for its launch. However, last month, leading Japanese banks MUFG, Mizuho and Sumitomo Mitsui Banking Corporation began developing a government infrastructure for settlements in digital currencies.