By FintechNews staff
The trust banking arm of Mitsubishi UFJ, Japan’s largest bank by assets, is planning to use blockchain technology for securities trading and set up the stablecoin as a payment instrument. The stablecoin will be pegged to the Japanese yen. The technology, according to the bank, has the potential to save millions of dollars.
This is the biggest development in terms of Japan’s banking system’s involvement with cryptocurrencies. Nikkei reported on Feb 7 that the bank would issue a yen-pegged digital currency that can be settled immediately.
The idea is to popularize digital securities that “can be bought and sold in small lots, such as commercial real estate.” This is an improvement over current systems, in which funds settlements can take up to two days.
At the same time, Japan is looking into releasing a central bank digital currency (CBDC), though no major developments have taken place. Japanese authorities have allowed banks and other institutions to issue stablecoins, which in part is an attempt to curb the influence of private cryptocurrencies.
Several countries are now working on CBDCs, with the aim of limiting the impact of cryptocurrencies. The U.S. Treasury has also remarked on stablecoin regulation and is likely to introduce some legislation this year.
2022 will be a year of regulation and limitations, as crypto grows more popular. Countries are warming up to crypto, but do not want it to reduce the importance of national currencies.
