There has been a lot of talk in recent years about Bitcoin and the potential of digital currencies. So far, very few banks and countries have made much actual progress in creating digital currencies, butBloomberg’s Christopher Langner believes that Misubishi UFJ Financial Group Inc (ADR) MTU 1.93%’s pledge to introduce MUFG Coin could be the first drop in a wave of new digital currencies.
Langner predicts that Mitsubishi UFJ’s move could become a trend in Japan, Brazil, China and Spain.
Digital currencies will allow for cheaper, safer global transfers of cash.
“For capital markets, digital currencies could enable instant settlement of securities trades, which would obviate the purpose of marketplaces such as the New York Stock Exchange,” Langner explained.
These new virtual currencies would likely be backed by government fiat currency, making them immune to the extreme volatility seen in the Bitcoin market.
Digital currencies could pose major threats to trade intermediaries like Intercontinental Exchange Inc ICE 0.65% and custodians like Bank of New York Mellon Corp BK 1.98% andEuroclear.
Nasdaq Inc NDAQ 0.34% has already launched a digital-asset registry called Linq. The new registry does not yet allow…
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