Establishing Smarter Remittance and Exchange of Stable Currencies in Japan: Mitsubishi UFJ’s Cooperation with Datachain and Soramitsu

It is reported that Mitsubishi UFJ Trust Bank, Japan’s largest trust bank, announced that it is establishing cooperation with Datachain and Soramitsu to smoothly realize the mutual transfer and exchange of various stable currencies scheduled to be issued in Japan, and to improve the efficiency and reduce costs of remittance between banks, companies, and individuals. The plan will conduct a demonstration experiment of “PVP payment”, which means simultaneous payment between different digital currencies on heterogeneous blockchain platforms. This cooperation will involve Progmat Coin, a stable currency platform owned by Mitsubishi UFJ Financial Group, and the regional digital currency issued by Soramitsu for the use of Hyperledger Iroha.

Mitsubishi UFJ Trust Bank is conducting a pilot study on the interoperability of yen stabilized currencies

Introduction

Mitsubishi UFJ Trust Bank, Japan’s largest trust bank, has recently announced its collaboration with Datachain and Soramitsu. The aim of this partnership is to facilitate mutual transfer and exchange of various stable currencies in Japan while improving efficiency and reducing costs of remittance between banks, companies, and individuals. In this article, we will delve into the details of this cooperation and what it means for the future of digital currencies and remittance in Japan.

Background

With the proliferation of digital currencies, stable currencies provide a means of creating a digital asset that maintains its value stability. Companies and financial institutions such as banks, particularly in Japan, have shown interest in stable currencies as they can reduce the volatility risk that comes with other cryptocurrencies. However, there are challenges when it comes to inter-transaction of stable currencies between blockchain platforms, making it difficult to achieve widespread adoption.

Collaboration with Datachain and Soramitsu

Mitsubishi UFJ Trust Bank’s partnership with Datachain and Soramitsu aims to address these challenges. It will focus on demonstrating the technical feasibility and practicality of inter-transaction of stable currencies between different blockchain platforms. Through this partnership, the parties will carry out a “PVP payment” demonstration experiment. PVP payment refers to the ability to make simultaneous payments between different digital currencies on heterogeneous blockchain platforms.

Progmat Coin and Soramitsu’s Regional Digital Currency

Mitsubishi UFJ Trust Bank’s stable currency platform, Progmat Coin, will be an integral part of this collaboration. The regional digital currency issued by Soramitsu for the use of Hyperledger Iroha will also be included in the PVP payment demonstration experiment.

Benefits of the Partnership

The collaboration between Mitsubishi UFJ Trust Bank, Datachain, and Soramitsu has several potential benefits. The partnership has the potential to improve the efficiency of inter-transaction of stable currencies between different blockchain platforms. By demonstrating the technical feasibility and practicality of PVP payment, the collaboration can contribute to the wider adoption of stable currencies in Japan. Additionally, the cooperation will help reduce the cost of remittance between banks, companies, and individuals.

Conclusion

The partnership between Mitsubishi UFJ Trust Bank, Datachain, and Soramitsu represents a significant step toward establishing a smarter and efficient remittance and exchange of stable currencies in Japan. Through the PVP payment demonstration experiment, the partnership will demonstrate the technical feasibility, practicality, and efficiency of inter-transaction of stable currencies between different blockchain platforms. This collaboration is set to be a game-changer in the digital currency and remittance industry in Japan.

FAQs

1. What are stable currencies, and why are they popular?
Stable currencies are digital assets designed to maintain their value stability. They are popular because they eliminate the volatility risk associated with other cryptocurrencies, making them more attractive to banks and large companies.
2. What is PVP payment, and how does it work?
PVP payment refers to the ability to make simultaneous payments between different digital currencies on diverse blockchain platforms. It works by leveraging smart contract technology to ensure that the payment occurs as soon as both parties have agreed to the transaction.
3. How does the partnership between Mitsubishi UFJ Trust Bank, Datachain, and Soramitsu impact the future of digital currencies and remittance in Japan?
The partnership is a significant step toward establishing a smarter and efficient remittance and exchange of stable currencies in Japan. This collaboration has the potential to improve the efficiency of inter-transaction of stable currencies between different blockchain platforms, reduce the cost of remittance, and contribute to the wider adoption of stable currencies in Japan.
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