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Japan’s Largest Bank ‘MUFG’ Suspends Blockchain Payments Network

Key Insights

  • Mitsubishi UFJ Financial Group (“MUFG”) will be suspending the operations of Global Open Network Japan, Inc. (“GO-NET Japan”)

  • MUFG stated the slow business growth due to the Covid-19 impact was the reason behind this decision.

  • However, MUFG will continue its other crypto ventures, including their upcoming Yen pegged stablecoin.

After almost three years of establishing Global Open Network Japan, Inc. (“GO-NET Japan”), the Mitsubishi UFJ Financial Group (“MUFG”) has announced that it will no longer proceed with its initial plans for GO-NET.

MUFG Suspends GO-NET

The largest bank in the country stated that GO-NET would be liquidated entirely after its operations were suspended. MUFG itself established the company along with Akamai Technologies, Inc.

This was done to provide “an open platform with high scalability and multi-connectivity data processing.” The company was launched for business in 2021 and failed to complete even a year.

The reason behind this decision, as MUFG stated, was the impact of the Covid-19 on the growth of the business. In addition, MUFG’s press release said:

“Slow growth of payment transaction numbers caused by the impact of the COVID-19 pandemic and other factors, made it difficult to develop its business on the scale originally anticipated…As a result, the business is not expected to be able to achieve profitability in a reasonable timeframe, and it was concluded that it would be desirable to suspend its operations.”

MUFG further clarified that the suspension bears no impact on the financial results of MUFG for the financial year of 2021-2022, nor does it affect their other projects, including their upcoming stablecoin.

The Progmacoin

Earlier this month, the trust arm of the financial group of Mitsubishi Group announced that they are looking to begin issuing their Yen-pegged stablecoin.

The primary purpose of the coin was stated for clearing and quickly settling digital security transactions related to the bank.

Their announcement came after another stablecoin called the ZipangCoin was announced by Japan’s trading company Mitsui & Co. However, this differed from traditional stablecoins owing to its 1:1 peg being gold and not Yen or USD. 

As crypto continues to grow in the country, more and more crypto companies will enter the space, and thus business as GO-NET could rise again.

This article was originally posted on FX Empire

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