The digital stock exchange that Mitsubishi plans to launch will compete with the Tokyo stock exchange
Despite its extremely volatile nature, the cryptocurrency has managed to create a niche audience for itself. Despite the risk, more and more people are willing to invest in it. This has brought the world acceptance of these cryptocurrencies, which has so far been mainly driven by private cryptocurrencies. With their acceptability increasing, many central banks are now looking at them as a whole and taking note of their potential. This growing sense of ‘trust’ has led private organizations to enter the new industry to see how they can capitalize on the emerging sector as soon as possible.
The latest to join the group is Japan’s largest financial institution Mitsubishi UFJ Bank. The trust branch of Mitsubishi has announced plans to launch a yen-pegged stablecoin, called “Progmacoin”, by 2023.
Why now?
According to the company announcement, report Nikkei’s first stablecoin will be used for clearing and settlement of bank-related digital securities. The need for Progmacoin to settle transactions in digital securities has arisen as the bank plans to launch a digital stock exchange in partnership with Japan’s SBI Group and Daiwa Securities by the end of the year. now. It wanted a way to settle transactions instantly, without waiting for the bank to enter the data into the ledger at the end of the day, which is often the case.
Blockchain technology improves that, and transaction data is instantly entered into the ledger automatically and visible to everyone. It also reduces transaction costs on the exchange.
The digital stock exchange that Mitsubishi plans to launch will compete with the Tokyo Stock Exchange.
What is a stable coin?
Cryptocurrencies are backed by real-world assets such as gold, fiat money (those issued by governments), and precious commodities classified as stablecoins. They are less volatile when compared to popular coins like Bitcoin, Ethereum and Dogecoin. Simply put, stable coins are the bridge between fiat and crypto currencies. They have the same valuation as fiat but offer the utility and portability of a cryptocurrency.
Is it a new cryptocurrency?
Is not. For example, Progmacoin is not planned to be the first stablecoin. Many previously launched stablecoins are pegged to other currencies. Tether is an example of a stablecoin, pegged to the US dollar.
Even in Japan, the stable coin was launched before that. The Bank of Japan has plans to test the yen-pegged digital currency this year. It is temporarily called “DCJPY”. Then there is a company announced by the trading company Mitsui & Co. called ZipangCoin, the stablecoin will be pegged to gold, instead of yen.
