Japan Megabanks Get rid of Joint Blockchain Funds Transfer Job, Transform to Their Have Cryptocurrencies

3 of Japan’s major banks have canceled a joint task of a blockchain-primarily based peer-to-peer money transfer service.

The 3 so-named Japanese ‘megabanks’, Mitsubishi UFJ Economic Team, Sumitomo Mitsui Economic Team and Mizuho Economic Team, mentioned the joint undertaking was a duplication of their particular person initiatives. They therefore saw no need to have to continue, in accordance to the Nikkei Asian Assessment.

Per the Japanese publication, the joint initiative would have authorized their shoppers to send and get cash making use of e mail addresses or cell phone quantities by using virtual accounts linked to their financial institution accounts.

Japanese Megabanks Associate With Fujitsu

As beforehand reported by CCN the task was introduced in 2017 in partnership with tech organization Fujitsu. The Japanese tech big was responsible for the growth of the blockchain options.

Moreover a cloud-primarily based blockchain system Fujitsu was also developing a smartphone software for the peer-to-peer money transfers. The intention then was to have the two options linked to the financial institution accounts at each and every of the 3 banks.

Exams of the initiative have been performed in 2017 and there have been options for far more complete trials very last 12 months.

Mizuho and MUFG The two Developing ‘Stablecoins’ to Lower Transaction Costs

Some of the initiatives the economic institutions are endeavor and which would have competed with the joint undertaking involve the growth of electronic currencies. The two Mizuho Economic Team and Mitsubishi UFJ Economic Team are developing their personal electronic currencies respectively named J-Coin and MUFG Coin.

In the scenario of Mizuho Economic Team, the initial examination of its electronic forex was performed in late 2016. The economic institution has been endeavor the initiative in partnership with IBM Japan. Mizuho’s intention with the J-Coin is to lessen money transfer prices. The J-Coin is in essence a stablecoin with its worth pegged to that of the Japanese Yen on a 1-to-1 foundation.

Mitsubishi’s MUFG coin experienced been introduced earlier in 2016 and just like with the J-Coin the objective was to lower transaction prices. And equally to the J-Coin the MUFG Coin is also in essence a stablecoin pegged to the yen.

Japanese Banking Giants Also Customers of R3 Consortium

At the time, the president of Mitsubishi UFJ Economic Team, Nobuyuki Hirano, indicated that MUFG Coin would find to reduce the issues bedeviling cryptocurrencies these as volatility.

[Mitsubishi UFJ Financial Group plans to] get over troubles of [existing] virtual currencies and develop a hugely practical forex.

Other than performing on their personal electronic currencies the Japanese economic institutions have also joined other world blockchain initiatives. Mizuho Financial institution and Mitsubishi UFJ Economic Team are some of the banks that have joined the R3 consortium.