The Bitcoin protocol and its underlying blockchain technology have thrown traditional finance a curveball they never expected. Digital currency allows for global financial services, regardless of existing infrastructure provided by banks or governments. It was only a matter of time until banks decided to look into this technology more, and eventually, issue their own digital currency. The Bank of Tokyo – Mitsubishi UFJ is looking to issue their version of digital currency shortly.
Touting The Benefits of Digital Currency And Blockchain
People who have been active in the world of Bitcoin and digital currency for quite some time now are well aware of the advantages this new breed of finance brings to the table. Not only will digital currency solutions help on saving costs for established financial players, but it will also help create an ecosystem where transactions are completed a lot faster.
One of the main things hurting traditional finance is the amount of time it takes to transfer value between people. Bank transfers, which are one of the most common methods for money transfers, can take anywhere from one to five business days, which is unacceptable in this day and age. At the same time, there are hefty fees associated with this process, especially when sending international transfers.
Banks have been struggling to come up with solutions that will address both of these issues in a convenient manner. Or that was the case, at last, until digital currency and Bitcoin came around. It was clear from day one how this technological marvel would help reduce costs, provide instant transactions, and work on a global scale.
Despite that positive outlook, traditional financial players have been fighting the concept of digital currency throughout the years. Granted, in the early years of Bitcoin, there were a lot of questions regarding its survival waiting to be answered. But over time, people started warming up to this concept, and financial institutions could not remain behind.
Fast forward to today and the Bank of Tokyo-Mitsubishi UFJ is looking to issue their own breed of digital currency in the future. Among the main reasons for doing so is the potential to save on overhead costs, and to change the way financial transactions are managed altogether. Distributed ledger technology will make the entire process a lot smoother in the long run, and banks will be able to reap the rewards.
Finishing The MUFG Coin Prototype
Considering how the Bank of Tokyo is part of the Mitsubishi UFJ Financial Group. the name of their new digital currency will be MUFG Coin. Development of this concept and associated prototype begun in 2015 and a working demo is expected to be revealed in the very near future.
By creating MUFG Coin, Bank of Tokyo is investing a lot of money into research and development related to digital currency. However, it is key for existing financial players to embrace new forms of innovation at an opportune time, In the end, this investment will pay for itself, thanks to the cost reduction associated with distributed ledger technology.
No further details regarding MUFG Coin have been announced at this time, and it remains unclear as to whether or not this digital currency will have a fixed coin supply or not. By the look of things, this is not a digital representation of the Japanese Yen by any means, but something entirely different.