Japan's largest bank could introduce global stable coins (report)

Japan's largest bank could introduce global stable coins (report)

The Mitsubishi UFJ Financial Group (MufG)-the largest financial institution in Japan-reports, the issue of global stable coins is considering its blockchain platform.

The bank has already announced plans for the introduction of such tokens that are bound to the value of the Japanese yen.

Mufg's new crypto idea

reported as According to Bloomberg, the company is in discussions with industry leaders and other companies about the embossing of stable coins like the US dollar are coupled. For this purpose, the company intends to use its Blockchain platform Progmat, said Tatsuya Saito, Vice President for Products.

The manager added that potential partners were several local financial institutions, entertainment companies and other non-financial companies when moving. There are also inquiries from foreign organizations, which means that Japan could become a global center for stable coins, says Saito.

Such financial products are the subject of an increased examination in the Asian country, especially after the collapse of the algorithmic stable coin VAT last year, which caused losses in billions of bills for investors.

The Japanese authorities recognized Data Preserver-Spaces = "True"> StableCoins as digital money, however, said that they only from licensed banks, money transformer agents or trustees could be output. Saito praised the recently entered into force and emphasized that it could bring additional consumer protection:

"Emittenters and users can feel safe when using stablecoins."

The Japanese government under the leadership of Prime Minister Fumio Kishida has ensured that the local crypto industry is flourishing. Last summer a guideline was adopted to advance the web3 sector in the country.

In addition, leading lobby groups have raised their voice for crypto control and insisted on the fact that the government authority lowers the tax rates. If your wish is approved, domestic companies are excluded from paying taxes on paper gains from cryptocurrency stocks if you have short -term business for other purposes.

The previous efforts

The Trust Banking branch of Mufg showed his first interest in the matter in February 2022 when he tested the possibilities of introducing a stable coin coupled to the official currency.

Experts claimed that such a token could enable the company to strengthen its payment network through the immediate processing of securities transactions. These types of money procedures are currently quite expensive and it can take a few days for them to be completed.

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