Bank of Japan-Mitsubishi UFJ May Be After Its Own Bitcoin

June 21, 2016 By: Steven Anderson

Bitcoin represented a major change in currency issues when it came on the scene and became hugely popular for a while in the early 2010s, and it got some to wonder, just what was stopping them from stepping in and getting their own breed of bitcoin going.

That’s an issue that Bank of Japan-Mitsubishi UFJ seems to be considering itself, and may be the start of an arms race of crypto-currency.

Reports seem to vary, with some suggesting the bank will release such currency next year and the bank countering with the assertion that no decisions have been made about release dates, though it was also noted the currency does exist.

The so-called “Coin” uses a similar blockchain technology to that used by bitcoin, which makes it similar in nature if issued by a bank rather than by someone else.

This actually isn’t the first such move in the region; reports compare the Coin to Suica, a kind of prepaid digital money that’s issued in the region.

Additionally, reports note the bank is looking into automatic teller machines (ATMs) that deal in Coin.

It would be easy to get unnerved about this development, because it represents a major potential destabilization in currency issues.

Essentially, if this sort of thing catches on, it might well be that a country might have three or more different currencies operating within its borders.

While it’s less unnerving if it has one-to-one parity—as both Suica and Coin seem to have or will have upon release—with the officially-issued national currency, it’s still a potentially unsettling development.

What happens if Bank of Tokyo-Mitsubishi decides to issue its currency at a premium, demanding 1.25 yen, or 20 yen, or whatever, per Coin?

What happens then if businesses start demanding Coin for payment?

What happens if employees demand to be paid in Coin as it represents a premium over yen? These are all issues to consider.

The future of such currency may be unsettling and unsettled alike, but it likely won’t be much longer before we see how it all boils down.

We may be looking at even more options than we already had, and options that may change the face of currency as we know it.