These are exciting times for payments, even though not all solutions will survive the current conditions. For example, Global Open Network Japan, based on blockchain technology, has met an early demise. Mitsubishi UFJ has canned the project, even though it had some benefits.
Curtain Call For Global Open Network Japan
One must acknowledge the launch of Global Open Network Japan was not straightforward. The project faced multiple delays and only went live in April 2021. That timing could not be worse, with a global pandemic changing the lives of billions of users. However, it was also an excellent time to see how well this blockchain-based payment rail would hold up under pressure.
Mitsubishi UFJ developed Global Open Network Japan with the help of Akamai. Together, they wanted to develop a new solution to facilitate payments across the Internet of Things. IoT is still in the early stages of development and expansion, so a capable payment network can accelerate growth. Moreover, Global Open Network Japan facilitated pay-per-use, micropayments, and other payment types designed for the IoT ecosystem.
Unfortunately, Mitsubishi UFJ deems it necessary to can the project altogether. All operations will be suspended, and liquidation procedures are underway. It is an unfortunate development for a system that seemingly had promise. However, it appears the team may have overestimated the popularity of IoT in Japan during COVID-19 times.
COVID-19 is not the only reason for shutting down GO-NET Japan, though. MUFJ cites ‘other factors” that made it difficult to develop the business as it was originally anticipated. Moreover, the network was not profitable and would not achieve profitability for the foreseeable future. It is not a knock on the blockchain technology used for payments, but rather a combination of external factors preventing Global Open Network Japan from taking off properly.