Reports On Japan's Biggest Bank Releasing Its Cryptocurrency
A report on various matters regarding cryptocurrency. Firstly, Japan is launching the cryptocurrency, then there is Tether as also the third one is the stand of South Korea. Read the informative piece of news.
It Is Observed That Japan’s Largest Bank Is Hopping Onto The cryptocurrency Bandwagon
Planning to release its coin Mitsubishi UFJ Financial Group Inc. according to reports will have parity with the Japanese Yen which will then be rolled out to the employees of the financial services group first as well as enabling standard transactions similar to shopping or transfer of money between individuals at what is a much lower cost as compared to credit cards.
As MUFG handles the processing of the transactions internally users will have to create wallets to use the cryptocurrency as it concluded tests to roll out the coin and tied up with the cryptocurrency exchange GDAX run by Coinbase.
It is because that being not ready to embrace cryptocurrencies, the banks have thereby increasingly moved towards developing their coins as also thereafter adopting the underlying technology to streamline operations whereas, for example, six banks including MUFG has joined UBS Bank’s Utility Settlement Coin consortium. Expected to be released in a limited manner the coin is interchangeable at parity with a basket of currencies.
To introduce cryptocurrencies that were legalized into mainstream society MUFG’s move comes as an expected development of the Japanese government. The Mizuho Financial Group according to reports were leading a consortium of banks to develop a cryptocurrency called J-coin by 2020. Playing a major role in pushing cryptocurrency valuations to new highs, the Japanese investors and exchanges along with South Korea, Japan accounts for a majority of trading volumes in prominent cryptocurrencies such as bitcoin and Ethereum. To test money transfer using blockchain technology from Ripple banking consortiums from the two countries are collaborating
How Do The Bitcoin Prices React To Tether Subpoena And South Korea News?
Thereby the moving prices in cryptocurrency markets are the scandals and regulation where the news reports about the CFTC’s subpoena for Bitfinex as well as Tether tanking prices for bitcoin and other cryptocurrencies thereby in the hours following the release of it.
Trading at levels below $10,000, bitcoin’s price fell by as much as 30% with the overall valuation of the cryptocurrency market has crashed to $500 billion while the pronouncements by South Korea’s finance minister regarding the cryptocurrency regulation reversing the decline. The only exception was Ripple cousin Stellar that had edged upwards thereby trading at $0.54 which is an increase of 2.46% with the overall market capitalization for digital currencies that was $ 511.8 billion
The Tether Effect On Crypto Markets
Generating much discussion within the cryptocurrency community as expected, the CFTC’s subpoena to Tether and Bitfinex are those who believe that a collapse in its prices is sure to crash crypto markets and accordingly the narrative is that Tether is being used to artificially prop up bitcoin prices with the domino effect of a fall in its prices expected to bring down other coins.
Others however have cast Tether as alone ranger whose fall is not affecting other virtual currencies while the Litecoin founder Charlie Lee tweets that tether comes to be just like any other altcoin as its price is set to crash to zero once the truth is emerging. Therefore, it is observed for sure that it depends on what the truth is. There have been charges as well as counter charges traded as little is known about the case for or against Tether.
Against Tether, there come two claims where the first one is that it issued currency to stem bitcoin’s decline, where at a cursory glance at the price charts for both currencies seems to provide credibility to the theory, for example, the price declines for bitcoin accompanied by a surge in the market capitalization for Tether.
As Tether is not backed by actual dollars there is also the charge as it claims with an inconclusive audit and hedged in ambiguous wording. The coin meanwhile is still trading at parity with the US D as the trading volumes and market cap are simply the number of coins multiplied by price and thereby surging where the latter metric suggests an increase in the number of Tether coins in circulation.
The Question Is Will They Or Won’t They?
Allaying market fears by stating that the government had no intention of banning or suppressing cryptocurrency markets, South Korea’s Finance Minister Kim Dong-yeon says regulating comments is the immediate task. Whereas the fact that the government officials have meanwhile uncovered the illegal foreign exchange trading using cryptocurrencies worth $ 472.3 million as there are some transactions conducted by illegal foreign exchange agencies transferring funds out of the country and using digital wallets. Thereafter the country has already ended anonymous trading on its exchanges.
Finally, The Discussion Ends Here
Accounting for the third biggest trading volume in cryptocurrencies South Korea has a major effect on the prices as the comments from the government resulted in a deep swoon for crypto markets. Hence as it will draw in more investors to the market, regulation might be the start of good things for cryptocurrencies there whereas the banking consortium in South Korea comes as testing the use of Ripple’s technology to increase efficiency as well as reduce transaction fees for the cross-border transfers with Japan.