Top Japanese financial bureaucrat Ryozo Himino thinks that promoting cryptocurrency trading will not necessarily accelerate technological innovation. Rather it will spark increased speculative trading, the regulator said. Himono has, therefore, cautioned against the same.
Deregulating Bitcoin & Cryptocurrencies Will Fuel’ Speculative Trading’
As per a Reuters article, the Japanese Financial Services Agency boss has shared fresh thoughts regarding his stance on crypto trading practices in the country.
Mr. Himino thinks that virtual currency trading doesn’t amount to any technological breakthrough, but makes the space open to market speculation.
The Japanese financial regulator said that the FSA is not at all ‘thinking of taking special steps to promote cryptocurrencies’ and remarked:
Deregulating bitcoins and other cryptocurrencies may not necessarily promote technical innovation, if doing so simply increases speculative trading.
Japan Needs To ‘Be Ready To Issue CBDCs’
On the contrary, Ryozo proposed to speed up efforts on the Central Bank Digital Currency (CBDC) front to embrace the coronavirus-led cashless payments revolution.
The FSA boss, despite his unrelenting stance on cryptocurrencies, has been supportive of the Bank of Japan’s research endeavors on the design and development of a state-backed digital currency.
Furthermore, he has made it clear to tie up loose ends and address every challenge that could potentially hinder the issuance of digital yens.
“We shouldn’t be worrying about various challenges without even trying to design a plan (for issuing CBDCs).”
“In the end, Japan must think really hard about whether to issue CBDCs because there are merits and demerits to doing so. What it can do now is to be ready so that when Japan decides to issue CBDCs, it can do so straight away,” he said.
Japan is a Still a Hotbed for Cryptocurrency and Blockchain Adoption
On one side are Mr. Ryozo Himino’s crypto trading concerns, and on the other side is Japan’s surging interest in adopting cryptocurrencies and blockchain technology.
As CryptoPotato reported last month, Japanese financial and banking giants have shown explicit interest in digital assets.
While financial conglomerate SBI Group made an agreement to acquire a $30 million stake in crypto liquidity, providing firm B2C2. And banking heavyweight Nomura Holdings partnered with Ledger and CoinShares to launch a Bitcoin and crypto-asset custody for institutions.
On the blockchain front, Sekisui House, one of Japan’s biggest real-estate organizations, was reported to leverage distributed ledger tech to simplify house renting and leasing contracts.
Also, global electronics giant Sony announced a blockchain-based database platform to redefine transformation and mobility within the country.
This shows that despite the skewed and skeptical stance of government office bearers, Japan’s multinational corporations are knee-deep in crypto, and actually think that dealing in cryptocurrencies, and their underlying protocols ‘will up the technological quotient’ of the country and the citizens.