Blockchain adoption in Japan is set to take a major step as one of the major banks in the nation, Mitsubishi UFJ Financial Group (MUFG) is set to launch its high-speed payment network by 2021.
Payment Network To Process 100,000tps
MUFG is set to partner with US-based tech firm Akamai to develop this payment network that will be launched in 2021. The network would be developed by GO-NET a joint venture between MUFG and Akamai. The company which was founded in May 2018, is controlled by the Japanese bank which owns 80% of the stake and will be expected to develop the blockchain payment network.
According to the reports, GO-NET will integrate payment terminals from electronic device manufacturer Seiko Holdings and MUFG credit card company MUFG NUCOS. The network plans to implement this by July of next year with the service enabling customers to buy drinks and beverages from vending machines in Japan. Users will be able to initiate payments by placing supported credit cards on the machine reader.
GO-NET also estimates that the payment platform will be able to process up to 100,000 transactions per second. This would exceed the capacity of payment processing giant VISA. At the moment VISA is able to process 70,000 transactions per second and GO-NET intends to revolutionize the payment network industry. GO-NET also hinted that the platform can be upgraded to reach a peak of 10 million transactions per second for small payments.
MUFG has a major advantage as it is already a major player in the financial sector in Japan. Akamai would help GO-NET build new infrastructures and currently has 280,000 servers in 136 countries.
MUFG is not new to blockchain technology and has been developing its native digital currency MUFG Coin for several years. However, it is not certain if the digital currency is related to its latest initiative.
Institutional Adoption on The Rise
Institutional adoption of blockchain technology is on the rise as more financial firms are looking towards blockchain for different applications. China Construction Bank (CCB) recently revealed that it would be selling $3 billion worth of debts in the form of bonds on the blockchain.
Also, there have been moves by many countries globally to develop their digital currencies using blockchain technology. With the current rush for adoption, it won’t be a surprise if traditional banking systems begin to switch to blockchain technology in the future.