World’s 5th Biggest Bank to Launch ‘Digital Currency’ Company in 2020

World’s 5th Biggest Bank to Launch ‘Digital Currency’ Company in 2020
(Source: iStock/winhorse)

One of Japan’s largest companies, Mitsubishi UFJ Financial Group (MUFG), is set to co-launch a “digital currency” and smartphone-based payment service – in conjunction with Japanese human resources network Recruit.

Per a report from Nikkei, the new joint-venture company will debut in 2020, and will be 49% owned by MUFG, with Recruit owning 51%.

The report claims the company will work in the field of “digital currency management,” and states that the program will likely allow customers to pay for Recruit’s HR services, as well as make restaurant bookings and payments using the Recruit-owned Hot Pepper Gourmet platform.

The Japan Times states that the new company’s platform will allow customers to pay in stores using QR codes, and notes that Recruit also owns the AirPay program, a cashless payment service network.

MUFG, which is the world’s fifth-largest bank per S&P Global, and is part of the Mitsubishi business group, has been working on the MUFG Coin, a stablecoin project, for some time – and had planned to roll the token out nationwide in the second half of this year.

However, the latest development would seem to indicate that the company may instead be looking to work with established partners on blockchain-powered payment solutions.

Cash usage is still widespread in Japan, much to the government's dismay. But QR-powered mobile payment is on the rise in the country – with a number of blockchain providers keen to capitalize on recent trends.

Learn more: Can Crypto Ventures Cash in on Gov’t ‘Cashless’ Drives?

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