Japan-based bank Mitsubishi UFJ Financial Group (MUFG) announced plans to launch its own cryptocurrency some time ago. However, it would appear that the plans have changed, and the long-awaited MUFG Coin plans will be scaled back.
Instead of launching full-scale crypto, Japan’s biggest bank plans to use the coin in a mobile payment business. So far, the identity of the service that will start using the coin remains unknown. However, it is scheduled to be revealed in partnership with a company called Recruit Holdings.
As for the coin’s new use cases, the bank said that the service would allow users to convert the money from their bank account to the MUFG coin, and vice versa. Additionally, the coin will be used as a unit of transactions. Although it is also noteworthy that users do not need to have bank accounts in order to hold and use MUFG Coin.
The service will emerge as a joint venture of the bank and Recruit Holdings, and it was originally set up earlier this year, in October. However, it is also known that Recruit Holdings will be the one to hold the majority stake.
As for the time of the launch, the new payment service is expected to see the light of day at some point in the first half of 2020. For now, the Mitsubishi and Recruit Holdings still wait for the green light from Japan’s regulators, as they require a fund transfer service provider license from the authorities.
Recruit Holdings’ associates will accept MUFG
One good news, however, is that MIFG Coin will not be limited to the banking halls. Instead, users will have the ability to use it at any of the Recruit’s associate firms. Later down the line, the coin will also be available to corporate customers.
Unfortunately, this will also be the end of any dreams of MFUG becoming a full cryptocurrency. According to the bank’s plans, the stablecoin should have already seen trials in 2019. However, at some point, the plans were postponed, and the coin’s new, less ambitious fate is now announced.