An official at the Central Bank of Japan recently said that although digital currencies have not yet achieved their goals of “cheaper remittances” and “supporting socially significant projects”, the bank believes it is very important to try to use them
On March 30, Bank of Japan Director of Financial Information Department Masashi Kuramoto published a summary of the publication entitled “Let's Think About Cryptocurrencies!” The document is available to the general public on the central bank's website.
The report provides a concise and simplified summary of frequently asked questions regarding the cryptocurrency market. Some of the questions focused on the use of digital currencies in the real world as means of payment. Some questions addressed the profitability of cryptocurrencies as assets.
One question worth mentioning is: “Isn’t it better to just ban what we don’t understand?”
To answer this question, Kuramoto stated that cryptocurrencies have not yet fulfilled their original goals of “cheaper remittances” and “support socially significant projects,” but in the future, cryptocurrencies will become a mechanism to make life easier people.
Cryptocurrencies still lack trust
Further he answered negatively to the question - “can cryptocurrency be equated to fiat - the dollar or the yen?” He noted that the latter are backed by central banks, while cryptocurrencies do not have an official issuer such as a central bank, corporation or other financial institution. Therefore, according to Kuramoto, what cryptocurrencies lack is the trust of users.
He continued, recalling the theft of NEM tokens from the Coincheck exchange, and accused the owners of the exchanger of not having adequate measures to prevent fraudulent activities:
“Since Japan is known throughout the world as a country where cryptocurrency trading is popularized, it is highly likely that the majority of thefts and fraud will occur in Japan.”
Finally, Kuramoto emphasized that investors and crypto enthusiasts should exercise caution.
According to https://atozforex.com
You May Also Like
China Tax Agency Calls for Tax on Cryptocurrencies
Despite crackdowns and attempts to completely eradicate all cryptocurrency transactions in the country, Chinese tax authorities are calling for a tax base for the digital asset industry to be defined.
Jerome Powell: Bitcoin will no longer be needed after the release of CBDC
US Federal Reserve Board member Jerome Powell believes that Bitcoin will become obsolete after the launch of the digital dollar.
