Mitsubishi UFJ Experiments Its Crypto For Retail Store Payment
Mitsubishi UFJ Financial Group launched its own cryptocurrency, MUFG coin, a while back.
Since its launch, the world’s largest financial group has been experimenting with the crypto token for real-world use, including its acceptance as payment in employee convenience store located at the firm’s head-quarters in Tokyo.
Sankei Shimbun, a Japan based daily news edition, which made a visit to the store, has reported that the experiment “is quietly advancing.”
A separate cash register has been set aside for payments carried out through MUFG crypto at the store. At the checkout, the payment is made by scanning the QR code with smart phones. The process will be continuously monitored by MUFG to understand the issues faced by the users and the store. Mitsubishi UFJ is also encouraging colleagues to use MUFG coin for conducting personal transactions between them.
MUFG Bank is a subsidiary of Mitsubishi UFJ – Japan’s largest financial groups with assets of more than ¥306 trillion. The bank, which has the largest network in Japan, has offices in over 40 countries.
The Mufg coin was developed when Mitsubishi UFJ Financial Group started exploring how
“blockchain technology could be applied for a variety of everyday financial needs, such as withdrawals and deposits to transactions and payments.”
The company further elaborated saying
“Potentially this coin could have large-scale commercial potential, as well serving small-scale retail bank customers. Other than Mufg coin, Mufg is testing another untitled digital currency rewards [program] for employees who reduce their overtime hours and practice a healthy lifestyle.”
Notably, MUFG coin is pegged to the yen on a 1:1 ratio. Mitsubishi UFJ group also stated that fiat money in all forms (notes and coins) takes a “significant toll in terms of cost and time required for the procurement, storage and transport of these instruments is often overlooked.” Considering these issues, the firm resorted to the development of low-cost cashless finance infrastructure.
Per the statement issued by MUFG, the coins have characteristics such as “instantaneous transfer capabilities”, and facilitate micropayments “in decimal value increments.”