The intention to find use of Ripple’s distributed ledger technology for showcasing international money transfer has been declared by Mitsubishi Corporation and Mitsubishi UFJ Financial Group. Utilizing the solutions that the blockchain based tech firm is offering has come as an idea keeping in mind that it will lower time and costs of transaction settlement – according to Mitsubishi Corporation. Also as an addition, for the remittance test – Standard Chartered UK will be present.
“We aim for practical use within a few years,” the statement highlights.
Accordingly, Singaporean dollars will be sent to Singapore from Thailand as a subsidiary of Mitsubishi Corporation will issue the transaction from Ayutaya Bank to a Singapore base of Mitsubishi Corporation Affiliate in Standard Chartered.
“In the current international remittance, we use a network of International Banking Communication Association (SWIFT) where financial institutions of each country participate. In many cases, it often goes through multiple banks, it takes a lot of fee and generally takes several days to remit.”
Previously, Axis Bank and Standard Chartered – financial institutions, have announced that they are planning to use Ripple Tech a new cross-border payment platform to be built.
The platform – which will connect corporates between Singapore and India – will be accessible through Standard Chartered’s Straight2Bank system. According to SC’s release, the platform will allow users to see all fees up front, pre-validate transactions and thereby more quickly settle them.
The managing director and global head of client access for Standard Chartered – Gautam Jain, stated:
“The successful launch of our commercial cross-border payment service marks a significant milestone in the financial industry’s progress in applying distributed ledger technology for corporates.”
January’s early weeks have cast a shadow of doubt across the cryptocurrency market. Bitcoin, Ethereum, and so many others have plummeted in value with uncertainty ahead. Investors will see the easy tie between recent price drops and the uncertain regulations being handed down from South Korean Government and other entities. Despite this, there remain optimistic parties of the grandest extent. One of Japan’s largest financial bodies, the Mitsubishi UFJ Financial Group (MUFG), is introducing its own cryptocurrency as early as this March.
MUFG is among the globe’s most involved institutions, turning over $4.5 trillion in recent revenues. With total assets of over half that mark, the group is in a pivotal position for cryptocurrency. Members of the Japanese financial sector will have a first look at the MUFG coin before it is more widely spread into the general market. Handed down within the next couple months, it will be distributed on a limited basis by year’s end.
Japan has become a financial hub for cryptocurrency following the legalization of digital tokens as tender in 2017. Bitcoin planted many of its roots in the island nation. Standard businesses, bars and restaurants included, began accepting BTC as valid payment more frequently in November and December. The number of accepting entities is now into the thousands and continually growing.
Many believe it was only a matter of time before MUFG or a similar Japanese introduced itself to the crypto-market in a noteworthy capacity. London’s Bank of England is actively pursuing its own token as an increasing number of financial institutions are becoming involved. While it is evident that some of the financial sector’s principal entities support the digital currencies, there remains clear opposition. Indonesia’s central bank has come down against the major risk paired with investing in cryptocurrency.
Dedication to utilizing crypto in a retail mindset is fairly unique to the Japanese environment at present. A number of involved nations support the continued development of blockchain technology and the paired tokens, but lack the capacity or desire to dive in fully. MUFG’s coin look to work as a functional alternative to credit cards at a more efficient rate. Lower transactional costs and minimal interest implications open the door for persons to have more control over the financials without an unnecessary intermediary.
The release of this news has stirred up some confidence in cryptocurrencies. Unfortunately, the market’s strong recovery to begin Thursday was met with two noteworthy price drops as the day aged. Limiting the trading ability of armchair investors, it remains a difficult time to predict the extent of the market’s actions.