Japan and the cryptocurrency trend

japan-and-the-cryptocurrency-trend

As the world discovers a new form of currency that no longer needs any gold, silver, or copper coins and paper for making money, various economies in the world adapt. Among these, Japan, where most of its population loves using cash in buying everything.

Even before cryptocurrency made a significant boom in the 2010s, credit cards substituted money in developed countries like the United States. But in Japan, they remain faithful to their good ol’ cash for buying things and necessities; or would they? We all know that Japan is the best country to match with the words “innovation” and “invention,” and indeed, Japan is paving the way for its cryptocurrency usage.

What Japan foresee in 2015?

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Former Japanese Prime Minister Shinzo Abe stated that he hopes to make 40% of payments cashless by 2025. In August, the Japanese government announced a plan to provide tax breaks and subsidies for joining companies.

Although everything from credit card payments to QR code transactions is eligible, some of the country’s top financial institutions believe that the way to get Japan out of its cash woes is to run Bitcoin technology. What all these companies are betting is that Japanese society is ready to start using digital cash.

MUFG’s significant role in Japan’s new transformation

Mitsubishi UFJ Financial Group (MUFG), the country’s largest bank and the world’s fifth-largest bank by total assets, has cooperated with the US Internet company Akamai to establish a blockchain-based consumer payment network to adapt to the Olympic Games Convened.

It may be the fastest and most powerful consumer payment network to date if they achieve this goal. They claimed that it was able to process more than a million transactions per second in testing, and each transaction was confirmed in two seconds or less.

They said it could eventually complete 10 million transactions per second. (In contrast, Visa’s credit card network processes thousands of transactions per second.

Bitcoin can process up to seven transactions per second, and each transaction can take up to an hour to confirm.) The system is designed to process a variety of transactions. Payments range from automatic highway tolling to credit card payments and in-app purchases.

MUFG has also tested its cryptocurrency, which is far from the only one. Large holding company Mizuho Financial Group (Mizuho Financial Group) has experimented with blockchain technology as part of a project called “J-Coin.”

It plans to issue its digital currency for retailers in March. SBI Holdings, a large financial services company, said it is establishing its token, which is also used for retail payments, namely S Coin.

Japan’s reformation?

If the experiment is successful, the country’s economy can be reformed. From large bank-to-bank transactions to small-scale retail purchases, everything can be completed without delay and at just a fraction of current costs; on the contrary, even today’s credit cards will be slow and expensive.

At least one reason to believe that blockchain-based cash can be successful in Japan is that retail investors already love crypto.

Japanese traders account for more than half of all global margin trading in the forex market. Recently, they have used Japan’s bustling (now regulated) trading scene to expand into cryptocurrency trading.

It is difficult to determine the exact size of the Japanese cryptocurrency market, but since China restricted trading in 2017, it has become the largest market in Asia.

Deutsche Bank analysts said that Japanese retail investors are the main reason for Bitcoin. The price skyrocketed to nearly $ 20,000 at the end of 2017. The MUFG blockchain will run on Akamai’s servers.

The company is good at creating proprietary algorithms to provide web content to users worldwide in its core business. Champagne said that this experience could easily be translated into running a more energy-efficient network, faster and cheaper than a public blockchain.

MUFG believes that with so many, even if the payment is too small to play on the traditional credit card network, it will be feasible.

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