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Mitsubishi UFJ Financial Group (MUFG) – Japan’s largest financial institution – is reportedly considering issuing global stablecoins through its blockchain platform.
The bank has previously revealed plans to introduce such tokens linked to the value of the Japanese yen.
MUFG’s New Crypto Idea
As informed of Per Bloomberg, the entity is in talks with industry leaders and other companies on creating a stablecoin pegged to foreign currencies such as the US dollar. To do so, it intends to use its blockchain platform Progmat, said Tatsuya Saito, vice president of product.
The executive said potential partners in the move are a number of local financial institutions, entertainment firms and other non-financial businesses. There have also been inquiries from foreign organizations, meaning Japan could become a global hub for stablecoins, as envisioned by Saito.
Such financial products have been the subject of increased scrutiny in Asian countries, especially after the collapse of the algorithmic stablecoin UST last year, which resulted in the loss of billions of investors.
japanese officer Recognized Stablecoins are referred to as digital money, but state that they can only be issued by licensed banks, money transfer agents or trust companies. Saito praised the recently enacted law, maintaining it could provide additional consumer protections:
“Issuers and users can feel safe using stablecoins.”
Japan’s government, led by Prime Minister Fumio Kishida, has allowed the local crypto industry to flourish by introducing favorable regulations. It approved a policy last summer that should push the Web3 sector in the country.
Furthermore, major lobbying groups have raised their voices on crypto taxation, insisting that the ruling body reduce the rates. Should their wish be approved, domestic companies would be excluded from paying tax on paper gains on cryptocurrency holdings if they hold them for purposes other than short-term trading.
last attempt
The trust banking arm of MUFG showed its first interest in the matter in February 2022, exploring the possibility of launching a stablecoin pegged to Japan’s official currency.
Experts have claimed that such a token could allow the entity to boost its payments network by instantly settling securities transactions. These types of monetary processes are currently quite expensive and can take days to finalize.
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Mitsubishi UFJ Financial Group (MUFG) – Japan’s largest financial institution – is reportedly considering issuing global stablecoins through its blockchain platform.
The bank has previously revealed plans to introduce such tokens linked to the value of the Japanese yen.
MUFG’s New Crypto Idea
As informed of Per Bloomberg, the entity is in talks with industry leaders and other companies on creating a stablecoin pegged to foreign currencies such as the US dollar. To do so, it intends to use its blockchain platform Progmat, said Tatsuya Saito, vice president of product.
The executive said potential partners in the move are a number of local financial institutions, entertainment firms and other non-financial businesses. There have also been inquiries from foreign organizations, meaning Japan could become a global hub for stablecoins, as envisioned by Saito.
Such financial products have been the subject of increased scrutiny in Asian countries, especially after the collapse of the algorithmic stablecoin UST last year, which resulted in the loss of billions of investors.
japanese officer Recognized Stablecoins are referred to as digital money, but state that they can only be issued by licensed banks, money transfer agents or trust companies. Saito praised the recently enacted law, maintaining it could provide additional consumer protections:
“Issuers and users can feel safe using stablecoins.”
Japan’s government, led by Prime Minister Fumio Kishida, has allowed the local crypto industry to flourish by introducing favorable regulations. It approved a policy last summer that should push the Web3 sector in the country.
Furthermore, major lobbying groups have raised their voices on crypto taxation, insisting that the ruling body reduce the rates. Should their wish be approved, domestic companies would be excluded from paying tax on paper gains on cryptocurrency holdings if they hold them for purposes other than short-term trading.
last attempt
The trust banking arm of MUFG showed its first interest in the matter in February 2022, exploring the possibility of launching a stablecoin pegged to Japan’s official currency.
Experts have claimed that such a token could allow the entity to boost its payments network by instantly settling securities transactions. These types of monetary processes are currently quite expensive and can take days to finalize.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
