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Japan’s largest bank is abandoning its blockchain payment network.

According to a statement issued Tuesday. Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), has abandoned its blockchain payment network due to slow business growth. According to the statements, Japan had already started the procedures for suspending the blockchain payment network of the Japan Open Network (GO-NET Japan).

MUFG and US-based cloud services company Akamai Technologies established Japan’s GO-NET as a subsidiary in 2019. At the same time, the blockchain payment network was integrated with the Internet of Things (IoT) to deliver one million transactions per second. MUFG has now announced after three years that the company’s next step is to coordinate with all stakeholders before the dissolution of GO-NET and its subsidiary network.

The MUFG issued a statement detailing the reason for the abandonment of blockchain payment plans, citing the slow growth in the number of payment transactions due to several factors, including the COVID-19 epidemic. The MUFG has said that Japan’s GO-NET cannot achieve the network effect needed to expand the business. And that’s why the big bank has concluded that this blockchain project will not be able to achieve tangible business success in the short term.

MUFG is looking for new investments.

Despite the planned liquidation of GO-NET, the parent company has announced that it is emerging in the financial perspective following other investments. The big bank partnered with Coinbase last year to set up a cryptocurrency exchange in Japan. In addition to the Japanese Yen-based StableCoin programs, MUFG is one of the partner banks involved in conducting digital currency tests by the Bank of Japan.

Source: theblockcrypto

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