Will Japan Overtake in the Cryptocurrency Race?

Japan & Cryptocurrencies

Every now and then a technological revolution comes in that provides almost every country in the world an equal playing field. No matter how big or small you are, you, as a country have the advantage to leap ahead. The catalyst has been provided, and it is up to you to make it happen.

Of late, the unique opportunity available to every country is being crypto friendly and jumping on the bandwagon known as cryptocurrencies.

I was thoroughly prepared that countries like India, Russia, China and a few other nations would embrace it with open arms and try to leap ahead of the game, vis-a-vis, the United States, Canada, and Europe.

What happened? Just the opposite. In the initial stages, these countries have been anything but crypto-friendly. Especially, China and Russia.

Japan, however, surprised me. Last year (in 2017) Japan allowed cryptocurrency exchanges to be registered/licensed in Japan. Over 100+ companies are waiting to be licensed by the Japanese Financial Services Agency (FSA), whilst 16 are already operational.

The issue here would be fiat-to-crypto and back again to fiat. This is where Japan can really take the lead. Japan can offer to existing banks, clone licenses to enable them to deal in Crypto and Japanese Yen only.

The cloned banks only take JPY and deal with crypto assets.

For anyone to trade into one of these exchanges, they would need to purchase Japanese Yen. This would increase direct foreign exchange coming into Japan drastically. Think of it as FDI. The payout can only be in JPY. This would create instant liquidity and market makers around the world, that would be converting their respective currencies to JPY and vice versa — why? Because JPY would be the crypto-friendly currency.

Because these banks are cloned banks and ONLY touch JPY, there is no way the US Regulators or European Regulators can shut them down. They only deal with JPY and crypto.

Let’s face it – the United States has been playing the role of the bully as they have the best reserve currency in the world – the United States Dollar. So when push comes to shove, the US Government has a lot of leverage when it comes to financial sanctions and trade associated with the US Dollar.

Here is a chance for Japan to leapfrog, offer stable coins based on JPY and take the center stage for all things crypto. The question is – will it?

1 thought on “Will Japan Overtake in the Cryptocurrency Race?”

  1. Pingback: Central Bank of Pakistan puts prohibition on Bitcoin & Virtual Currencies. - Faisal Khan

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