Japan’s central bank, unlike China, isn’t petrified of capital outflows or investment
through cryptocurrency.| Source: Shutterstock
By CCN Markets: Japan’s central bank has reaffirmed the country’s position as one of the world’s most progressive countries with regards to Bitcoin and other cryptocurrencies.
According to the Nikkei Asian Review, a senior Bank of Japan official has stated that the apex financial institution is comfortable with Bitcoin as well as the technology behind it. Per the official, the Bank of Japan’s pro-crypto stance is helped by the fact that the country suffers no capital outflow concerns:
Because of their fear of capital outflows, the Chinese see every financial asset as the enemy. But we don’t worry about outflows. We are in love with the technology behind it and we are in touch with the technology community.
Why Japan promotes Bitcoin
The Japanese publication further quoted the central bank official as saying that “We promote bitcoin but only with controls”. While this might appear radical coming from a central banker, Japan has managed to use its progressive crypto stance to an advantage resulting in a vibrant sector. For instance, the Japanese Yen has been the second-most traded national currency for Bitcoin after the U.S. dollar for a long time.
Per Coinhills, the Japanese yen is used in 20.1 percent of all fiat-to-Bitcoin and/or Bitcoin-to-fiat exchanges globally. This is despite the global use of the yen as a reserve currency being just five percent.
Among other firsts relating to cryptocurrencies achieved in Japan, the Far East country has pioneered the regulation of crypto exchanges at a national level.