Japan’s Largest Bank is Testing Digitised Checks on a Blockchain in Singapore

What you need to know: The Bank of Tokyo-Mitsubishi UFJ is working on a proof of concept to digitalise their checks process, from issuing, through transfer to collection. This can work well to reduce settlement times, reduce back office processing and to reduce crime too. The Singapore fintech regulatory sandbox has been chosen for this experiment. Also, in 2016, the bank confirmed experiments of “MUFG Coin”, its proprietary digital currency. Based on blockchain technology, the bank could become the world’s first global financial institution to issue its own digital currency.

Why this is important: We don’t believe this is really a game changer, as checks are really meant to disappear. It doesn’t either provide a first mover advantage. However, this case demonstrates the appetite to experiment with blockchain and the strength of the Singapore fintech environment.

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