Moreover, this new project is designed to tackle a million transactions regarding per second specifically for the Tokyo 2020 Olympics. Mitsubishi UF Japan Financial Group aka MUFG is the worlds’ fifth-largest bank by an asset.
The report by MIT Technology Review specifies that MUFG partners with Akamai, basically an American internet startup. This partnership will help create and deploy the fastest payment network. Moreover, it seems superior to Visa as well as Bitcoin, currently, which are the leading fiat and crypto networks.
This is basically an experiment if it proves to be successful for the Olympics; this will provide a green signal to an era of financial innovation. Despite of the leading e-transaction infrastructure, some country still avoids cash transactions. Many countries are working on this looking at its Asian neighbors such as China and South Korea.
It is said to likely be the Japans’ initial large-scale deployment regarding blockchain payment solution. The similar experiment is shorting by Mizuho Financial Group along with SBI Holdings.
The Cash Issues In Japan
Despite its image for the innovation towards world-leading technology, the financial system still remains an issue in Japan. This has been a stubborn cultural preference regarding purchasing goods and services in cash.
The citizens in Japan are the most prolific clients for physical cash, while the country has coast of running around 200,000 strong ATM network. Whereas, these ATMs have cash registry estimating over $18 billion annually.
Meanwhile, the financial industry is looking to endure the cost for keeping the process stranglehold on the popular patriotic consumer market in Japan. Probably, this siting relating Olympic Games 2019 in Tokyo might help make the current situation untenable. Majority of these visitors tends to come from these countries where e-transactions are par for the course.
MUFG is likely eyeing on some core facts relating cryptocurrency usage in Japan which has pushed them so far. The Japanese clients seem notorious for their cash bias as cryptocurrency is now entirely popular in the country.
On the other hand, Mt. Gox basically a defunct bitcoin exchanges processing with 70 percent from bitcoin exchange transactions. Also, the Japanese Financial Standards Agency aka FSA is one amongst the experienced agencies around the space of cryptocurrency regulation.
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