Mitsubishi UFJ Financial Group (MUFG) is launching an initiative to open a new exchange and issue its own virtual currency: the “MUFG coin.”
MUFG plan to suppress fluctuations in the price of MUFG coins by controlling the trades themselves so that they can be used stably for settlement and remittance. This step by MUFG, is going to make the above said digital currency centralized and it could easily be controlled by a bank. In addition, the bank can also control the value of the coin, which is aiming to be worth approximately 1 yen. This coin will be users friendly easily accessed by their smartphones and will be used as a mode of payment for services and products in a secure way.
They (MUFG) are aiming to increase adoption with suppliers and retailers throughout Japan for the payment platform and are aiming to launch it later this year. The move shows how digital currencies and blockchain tech are slowly being realized by financial institutions, who are keen to benefit from the cheap operational costs that virtual currencies can offer.
Legislative Hurdles and Financial Regulation
MUFG has already informed the Financial Services Agency on their plans to issue coins and open an exchange. The coins will be issued with the collaboration of Bank of Tokyo-Mitsubishi UFJ, with plans to organize competitions to generate ideas for business usage of the MUFG coins in March.
For establishing a virtual currency exchange in Japan, MUFG will have to register with the Financial Services Agency, and there are still some hurdles left. With the continuous growth of Fintech industry, further rules and regulations for responding to new services like MUFG will continue to be advanced in the country.
Online Responses To The MUFG coin Announcement
Users took to Twitter to voice their opinions on the upcoming coin launch. They were quick to point out that the MUFG coin is not OMG and that the price is to be capped at 1 yen per coin.
The Mitsubishi UFJ Financial Group, headquartered in Chiyoda, Tokyo, is Japan’s largest financial group and is the 2nd largest bank holding company in the world, holding around $1.8 trillion USD.
Will we see increasing crypto currency initiatives such as this, with centralized banking controls? Do they offer the same degree of security as other decentralized cryptocurrencies? Let us know what you think in the comments below.
Take a Crypto Pill
Crypto market is crashing, we all know that, panic sellers are taking over the market with massive sell-off. You can’t control that, just calm down and take a Crypto Pill to make things easy.
Crypto Pill is the term being used by industry leaders to make things calm down from recent fiasco, yesterday a leaked news from CFTC about Bitfinex and Tether made things even more difficult for crypto traders, short sellers went all into the market with massive short bets, and they won, Bitcoin price slipped below $10000 level to as low as $9500, but later on recovered to $10K , but selling pressure is still there.
First South Korea and now US
First it was South Korea, the country with massive trading volumes in crypto market, they announced to ban anonymous crypto trading and ban took place effective from 30th Jan 2018, then a sudden news came from US market when Bloomberg broke the news that US financial regulatory authority CFTC investigating Tether and Bitfinex, but later on it was confirmed that news was from December last year, which made market calm down a little bit after all that tension and hype about US crackdown on crypto currencies.
HODLers will take over market soon
Despite of all this fiasco, Hodlers are still holding their Crypto currencies, they are not giving up and they holding for their dear life, it is very much possible that they take over this market in near future, making another uptrend in coming months.
Venezuela is the cheapest country to mine Bitcoin
Cost of mining one Bitcoin in Venezuela is just $531
Most expensive country to mine Bitcoin is South Korea, where cost of mining one bitcoin is $26,170
After recent crackdown by Chinese Government on Bitcoin miners, most talked about topic in bitcoin community is that which country would Chinese Bitcoin miners chose to shift, as many research firms were working to find the best possible option for the miners, one of the best option is Venezuela, where cost of mining one bitcoin is the cheapest, just $531, as compared to China where cost of mining one bitcoin $3172.
Others with lower costs are Bangladesh, Belarus, Paraguay, Serbia and Trinidad & Tobago. The most expensive is South Korea at $26,170 per coin. The U.S. cost is $4,675.
Calculations for the amount of energy consumed were based on the average usage of three popular types of mining equipment: the AntMiner S7, the AntMiner S9 and the Avalon.
Bitcoin mining consumes a lot of energy and according to one estimate, Bitcoin mining currently consuming energy which is more than 159 countries, including countries like Ireland
Crypto trading volumes are dropping
Volumes in crypto market are dropping, indicating an alarming situation. Crypto market started this year on a good note but later on crashed to low levels, apart from Ethereum, all other major crypto currencies are down for 2018, but one of the most alarming situations in this matter is that trading volumes on different exchanges are dropping to lowest levels in recent months.
For example, on Bitfinex current trading volume of Bitcoin is at around 25000 which at one point of time was as high as 160000 , which means this volume is not even 20% of its peak volume. Similarly in the case of Ripple, current trading volume is 8 Million which at one point of time was 50 million, so there is an alarming situation in that regards because not only price is dropping but crypto trading volume is also dropping dramatically.
Lack of interest?
One of the key questions that analysts are asking these days is that, is it lack of interest from investors that volumes are so low? may be they have found new investment opportunity in the form of S&P 500 and Gold. Most of the analyst think that this low activity is due to the reason that market speculators are currently out of the market and in wait and watch situation to make an entry point.
Calm before the storm?
Such low volumes and price movement in a tight range suggest that this is the calm before the storm, many regulatory authorities around the world are trying to stop crypto trading by either putting complete ban or by introducing tight laws, so speculators and institutional investors are just waiting for a clear picture so that they can make their bet on it, but one thing is for sure that sooner or later market is due for heavy movement in either direction, so day traders need to watch out.
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