Use Blockchain Technology and Cryptocurrency for Remittances – Sustained Use is Based on Benefits

By Maheen Hernandez April 15, 2019 Off
Blockchain Technology

More and more companies are willing to use the blockchain technology and cryptocurrency for remittances.  Financial institutions are coming into terms with reality, and they are eager to adapt and evolve these products to suit the requirements of modern society.

Mitsubishi UFJ stated that they would be launching their own cryptocurrency by the end of this year.  While this might not sound like it is too important to the rest of the world, when the perspective is taken into consideration, it makes absolute sense.

MUFJ is the most influential private bank excluding Chinese institutions.  The total capitalization of this bank is more than JPMorgan Chase by 169 billion.  Total capitalization is at 2.78 trillion dollars, which is 300% more than the total assets of Goldman Sachs.

Kanetsugu Mike, President of MUFJ bank, stated: “We aim to build an organization that is relied on and trusted globally, and represents innovation.”

The Mitsubishi UFJ team are confident to move ahead towards the implementation stage.  Of note, this is not the first time that a bank is getting interested in cryptocurrency.  IMF and BIS have as well announced that they will be involved in assessing the risks and benefits of issuing the CBDCs.

The overall cryptocurrency market is considered to have bottomed out, and many consider that the crypto winter is over with the price re-bouncing.  This was stated by Binance thus:  “Having emerged from a period with highest internal correlations in crypto history, the data might support the notion that cryptomarket has already bottomed out.”

While it is that “no one needs to use crypto, but they want to.”

Merchants are those who will be getting the most from using cryptocurrency.  They will be saving a lot of stress over their settlement time worries and their 7% transaction fees.   While several merchants do not really want to run ahead of the rest to offer cryptocurrency payment systems, they tend to provide this option for fear of missing out.

Despite merchants using the new payment system, they will stay for long in the system only for as long as it makes sense to them.  Though customers will be interested in using something for the fun of it, they will be willing to use it only for the sake of the long-term term benefits.  Sustained use is dependent on the benefits.

Meanwhile, the largest P2P cryptocurrency market place has added Dash; this move is expected to increase Dash access and usage.

  • 3