Bitcoin Boom: Largest Japanese Bank is Looking To Transform Credit Card
The Mitsubishi UFJ Financial Group is planning for turning a majority-owned credit card unit to a wholly owned subsidiary to manage the Bitcoin, digital currencies.
As per a Nikkei Report, the MUFG is looking to turn a main credit card unit into a digital currencies and payments hub in order to prepare people for a shift to cashless payments via digital wallets and digital currencies.
There is around 85% stake owned by the MUFG in one of the major credit card issuers in Japan Mitsubishi UFJ Nicos while the remaining 15% are owned by a Tokyo-based bank Norichukin Bank who mainly offer services to agricultural cooperatives. As per the report, an amount of ten billion yen will be paid by MUFG for the share of Norinchukin Bank in a transaction that is expected to process this year.
Why is Japanese Bank making this move?
The Japanese Bank is looking for reasons to establish a company for handling the payment platforms especially the cashless payments that are driven by the virtual currencies and digital wallets because they become popular in Japan as per a company official.
The marked move by larger banks and companies in the digital currency market has resulted in up to 260,000 stores, who start to accept the cryptocurrency this year. Japanese authorities are expecting to get up to 18 applications from organizations for acquiring the digital currency exchanges.
Out of 18 applications, 10 are new and companies are looking for carving an entry into the space of digital currency. Japanese internet services company, GMO is one of those applications and launching a bitcoin exchange in the coming weeks. Japan is the largest trading market in the world for bitcoin digital currency.
The three megabanks in Japan MUFG, Mizuho and SMBC are investors in Tokyo-based bitFlyer, which is the largest bitcoin exchange in Japan. Additionally, the MUFG is also an investor in bitcoin exchange Coinbase.