Mitsubishi UFJ Financial Group Bank (MUFG) has released a statement saying that while it has agreed to collaborate with Recruit, the details of the joint project have not yet been made public.
MUFG is Japan’s largest bank and the 5th in the world. The rumors that it may launch a new digital currency in Japan have been denied in a statement from December 4. In the statement, MUFG is saying it hadn’t yet decided if it’s most recent business collaboration will lead to forming a digital currency.
Partnership On, Launching Digital Currency Off
The rumors that MUFG is going to launch a new digital currency were circulated by a few English-language media outlets, Japan Times included. They were saying the currency will be released in the first 6 months of 2020. This is what MUFG had to say in a statement that denies these rumors:
“These reports are not based on any announcement made by MUFG Bank. It is true that we have concluded the joint venture agreement for an establishment of a new company. No other decision has been made in this regard at this time.”
Digital Currencies Already Flooding the Japanese Market
Reportedly, the offering would have allowed users to make payments with their smartphones by using QR codes and their digital currency account that would have been linked to their bank account. Japan Times even cited sources and said MUFG would hold a minority stake when compared with the 51% owned by its partner Recruit, the provider of human resources services. Many banks are trying to front-run the demand when it comes to digital currency payments, the J-Coin Pay from Mizuho Bank gaining more and more attention in Japan.
MUFG Has Extended Blockchain Experience
Launching a digital currency wouldn’t have been MUFG’s first time doing anything in the digital currency space. In 2018, the bank launched the MUFG Coin project, which is an in-house digital currency. Also, in February, it had formed a partnership with Akamai, the content delivery network, to launch in the first 6 months of 2020 a blockchain-based payment network called Global Open Network.