1. PixelPlaygroundHome
  2. Metaverse Insights

Establishing Cooperation to Smoothly Realize Mutual Transfer and Exchange of Stable Currencies in Japan

• Metaverse Insights • 94 views

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

Establishing Cooperation to Smoothly Realize Mutual Transfer and Exchange of Stable Currencies in Japan

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

Outline:

I. Introduction
– Explanation of Mitsubishi UFJ Trust Bank’s announcement
II. Background
– Definition of stable currencies
– Issue of transfer and exchange of stable currencies
– Current state of remittance between banks, companies, and individuals
III. Mitsubishi UFJ Trust Bank’s Solution
– Description of cooperation with Datachain and Soramitsu
– Plan for “PVP payment” demonstration experiment
– Details on Progmat Coin and Soramitsu’s regional digital currency
IV. Advantages and Benefits
– Improved efficiency and reduced costs of remittance
– Simultaneous payment between different digital currencies
– Encapsulation of blockchain on a wider scale
V. Challenges and Risks
– Potential obstacles to widespread adoption
– Infrastructure requirements and related investments
VI. Conclusion

Article:

In recent news, Mitsubishi UFJ Trust Bank, Japan’s largest trust bank, announced that it is establishing a collaboration with Datachain and Soramitsu to smooth the realization of mutual transfer and exchange of various stable currencies scheduled to be issued in Japan. The initiative aims to improve the efficiency and reduce the costs of remittance between banks, companies, and individuals. Furthermore, the plan will conduct a demonstration experiment of “PVP payment,” which means a simultaneous payment between different digital currencies on heterogeneous blockchain platforms. This pioneering venture involves 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.
To understand the significance of this announcement, it is vital first to understand stable currencies. Stable currencies are digital currencies that are created to be stable in value and avoid the price volatility that cryptocurrencies like Bitcoin experience. Stable currencies are designed to be pegged to an existing currency, asset or commodity, such as the U.S. dollar, gold, or oil. They offer a reliable alternative to traditional cryptocurrencies, making them appealing to investors and institutions alike.
While stable currencies are becoming more widespread every day, there is still an issue in transferring and exchanging them. Many institutions do not recognize each other’s stable currencies, making cross-border transfers and exchanges challenging. On top of this, the transfer and exchange process is complicated and expensive due to the middlemen involved in the process.
Mitsubishi UFJ Trust Bank aims to solve these issues by collaborating with Datachain and Soramitsu. The partnership will enable them to realize the mutual transfer and exchange of various stable currencies issued in Japan efficiently. They will do this by conducting a “PVP payment” demonstration experiment, involving a simultaneous payment between different digital currencies on heterogeneous blockchain platforms. Progmat Coin and Soramitsu’s regional digital currency will be used to facilitate this demonstration.
The advantage of such a solution is numerous. First, it allows for simultaneous payment between different digital currencies, eliminating the need for a middleman whenever a transfer or exchange is needed. Second, it improves the efficiency of remittance transfers between institutions. Lastly, it reduces the costs associated with remittance by cutting out the middlemen that currently charge fees for their services.
While the solution is promising, several challenges and risks may still hinder the widespread adoption of this solution. One challenge is the lack of infrastructure required to encapsulate blockchain on a wider scale. This would require significant investment, which may not be feasible for some institutions. Another challenge is potential regulatory barriers posed by various governments. These regulatory challenges may create more significant problems for institutions that seek to adopt this solution.
In conclusion, the cooperation between Mitsubishi UFJ Trust Bank, Datachain, and Soramitsu is a pioneering venture that aims to improve the efficiency and reduce the costs associated with remittance transfers between institutions. It is a forward-thinking initiative that will enable seamless transfer and exchange of stable currencies, encouraging the growth of blockchain technology in the financial industry.

FAQs

1. What are stable currencies?
Stable currencies are digital currencies designed to be stable in value and avoid the volatility associated with traditional cryptocurrencies like Bitcoin. They are created to be pegged to an existing currency, asset or commodity, such as the U.S. dollar, gold or oil.
2. What is “PVP payment”?
“PVP payment” refers to the simultaneous payment between different digital currencies on heterogeneous blockchain platforms. This is a crucial feature proposed in the Mitsubishi UFJ Trust Bank, Datachain, and Soramitsu partnership.
3. What are the benefits of the Mitsubishi UFJ Trust Bank collaboration with Datachain and Soramitsu?
The partnership will allow for the seamless mutual transfer and exchange of various stable currencies issued in Japan efficiently. The collaboration aims to improve the efficiency of remittance transfers between institutions, reduce the costs associated with those transfers, and allow for cross-border payments in a simple and cost-efficient way.

Keyword:

stable currencies, Mitsubishi UFJ Trust Bank, Datachain, Soramitsu

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/10663/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/29/2023 04:00
Next 03/29/2023 04:12

Recommended articles