The top three Megabank of Japan is to test MUFG Coin, allowing 100,000 MUFG Bank Account Holders to Participate.
They will be able to convert their wire deposit into coins through a wallet-based wallet application with an MUFG of 1 yen. Once Japanese account holders have coins, they will be able to use it as regular money to pay in bars and stores that accept it.
To accelerate the adoption process, MUFG considers the possibility for companies to promote the acceptance of MUFG coins. What these transactions are unclear at this stage, but they could offer discounts on bank fees or even impose them all together temporarily.
However, details are rare with one of Japan’s largest broadcasters, NHK, providing little information about this story, except that the bank will oversee the transactions to guarantee that everything works as expected.
That indicates we do not know precisely at a technical level how this is set, so you have no clarity whether this is a true cryptocurrency or just in name. However, if it is real crypto, then it is not clear how it was designed, with the central question being what blockchain would be used.
It could be a token that would probably have been run on the Ethereum Blockchain, with the token thus bound to 1 yen and probably so convertible back to it.
That would make it the most prominent real-life tokenized life process, with the potential bank earning profits from transaction fees.
However, how much control the bank would have over this token is very much an open question because the design could range from yen IOU to almost digital cash.
From behind would probably turn into heads because for the first time I see how fiat cash with its payment system that can work next to the Ethereum adds or does not add value or utility to end-users.