The Japanese financial group MUFG announced the closure of the GO-NET Japan payment system on the blockchain due to its slow development and lack of demand from target customers.
A payment system called Global Open Network Japan Inc. (GO-NET Japan) was introduced back in 2019 after three years of development. However, its launch came two years later, in 2021, when the Mitsubishi UFJ Financial Group (MUFG) partnered with Akamai Technologies, a Massachusetts technology company.
According to the developers, GO-NET was an open payment network capable of processing over a million transactions per second. The network could also support various payments using blockchain and IoT. However, MUFG said that this project did not live up to the expectations of the developers, as the economic downturn caused by the pandemic had a strong impact on the payment market.
GO-NET Japan has failed to gain a foothold in the IoT market, which the company predicts has great market opportunities. MUFG said that it has been making every effort to meet the growing market needs of the GO-NET system, using the high scalability and versatility of the blockchain for data processing.
The bank said the product would take much longer to commercialize than originally thought. The system will not be able to become profitable in a reasonable time, so MUFG is forced to stop using it. After agreement with customers and partners, MUFG will proceed with the liquidation procedure for GO-NET Japan.
At the same time, MUFG will continue to explore the possibilities of the latest technologies for digital payments and is discussing further cooperation with Akamai based on the lessons learned from the work on GO-NET. MUFG is also working on its own stablecoin for instant settlement of securities transactions. In February, the bank introduced the Progmat Coin platform for issuing yen-pegged stablecoins.
Source: Bits

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