After Goldman Sachs and Circle announced the launch of their own cryptocurrency, now another financial services giant is getting ready to launch their own digital currency by next year.
The Japanese Mitsubishi UFJ Financial Group (MUFG) is said to launch the digital asset by next year. The coin, called MUFG Coin, will be launched with the participation of around 100,000 account holders, as reported by Verdict Co and the Japan Broadcasting Association.
When the trial period begins, all participants will be able to convert their deposits into the new coin via a mobile app. According to press, each MUFG coin will be equal in value to one Japanese yen. Also, each owner of the Coin will be able to transfer the digital asset to other people.
MUFG Coin will be used as a transaction coin, meaning that users will be able to pay for different goods, services, and all other stores and establishments that will accept the MUFG Coin.
More information is expected about which merchants will be accepting the MUFG Coin. However, the idea that each coin will be pegged to the Japanese yen is again the idea of “stablecoins”. These are digital assets that are pegged to their respective fiat currencies. For example, the EURS Coin will be pegged to the euro, while Goldman’s USD Coin will be pegged to the dollar.