Japanese bank plans its own cryptocurrency, large scale trial next year

A major Japanese bank is planning a 100,000 participant trial using its own cryptocurrency for payments and transfers.

According to Japanese broadcaster NHK, Mitsubishi UFJ Financial Group plans to carry out a large-scale trial of its own digital currency. The bank plans to trial its MUFG Coin in some areas of Japan next year, and is looking for around 100,000 of its customers to participate.

Customers who apply and are accepted into the scheme will get a smartphone app that will switch Yen to MUFG on a 1:1 basis, from which they can make payments in restaurants and retailers, or send MUFG to other participants. In the background, the bank’s staff will be monitoring transactions to ensure security and a smooth flow of money.

The move comes as the Bank of Japan’s Governor, Haruhiko Kuroda, shared his opinion that the U.S. and Europe’s central banks are “extremely cautious” of the idea of issuing digital currencies as substitutes for cash. He, however, added that his organisation had no such plans itself.