One of the largest banks in the world launching cryptocurrencies
The cryptocurrency fever is actually spreading. The 4th largest bank in the world that is Japan’s Mitsubishi UFG financial group has announced that it would be launching its own cryptocurrency. The financial group is largest in Japan when it comes to the financial industry.
This is however not an entirely new News as the group is at these plans since 2016. However, the details have now been finalized and the launch date has been fixed in FY 2018. The bank would be using the financial technology behind the cryptocurrencies in order to power the transactions. The blockchain technology would enable person-to-person transactions which would be instant and nature. Moreover, the fees of these transactions would be on the lower side which would actually boost the usage of the currency. This would also ensure that there is stability as well.
For all the financial transactions, the company would be using this cryptocurrency. This would ensure that there is plenty of liquidity. When there is plenty of liquidity, there would be stability in the prices of this coin as well. This would automatically enable investors to invest in these cryptocurrencies as well.
DMM group is another group in Japan which has recently launched a 7 set cryptocurrency exchange from January 11. It would also use the blockchain technology in order to fuel the exchange.
In stark contrast to this, some of the other neighboring countries to Japan like China as well as South Korea are cracking down on the cryptocurrency exchanges as well as investors. Therefore, there is currently a lot of volatility when it comes to the cryptocurrency markets. Also, due to the ban of cryptocurrencies in South Korea or the rumor that it would happen, the cryptocurrency prices are decreasing significantly. This is one of the main reasons why it is becoming difficult for the cryptocurrencies to maintain stable prices well.
Banks launching their own cryptocurrencies
With that being said, if the banks, as well as financial companies, are engaging in launching their own cryptocurrencies, you can be sure that the credibility of the cryptocurrencies would increase significantly. When the credibility of the cryptocurrency increases significantly, you can be sure that the volatility would decrease and the stability would increase significantly. This is one of the main reasons why cryptocurrency investors are actually pretty excited by this launch by one of the biggest banks in the world and hope that it would induce some stability as well as credibility into cryptocurrencies.