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.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share