The central bank of Japan has revealed some relevant opinions in a general Q&A on cryptocurrencies.
On March 30, 2018 Masaki Kuramoto-the head of the Bank of Japan’s Financial Services Information Division-published an interesting summary Q&A called “Let’s think about cryptocurrencies!” aimed at the general public in an educational website managed by the central bank.
This summary offers intriguing responses to frequently asked questions about cryptocurrencies. Questions concerning their use in the real world in areas like payments and remittances, their profitability as an asset and much else besides.
One question bring out in the text, asking the query: “Shouldn’t it be better to ban something we don’t understand?”.
To this, Kuramoto claims that cryptocurrencies have not yet meet the objectives for which they were created in the first place: such as ‘cheaper remittance’ and to ‘support socially significant activities.’ However, he added that cryptocurrencies, when matured in the future, could be implemented in a new mechanism that could dramatically convenience people’s lives in society.
Kuramoto also added:
“To that end, it is important to actually try it in the world. There is reason to believe that its maturity will allow us to use existing cryptocurrencies, accumulate use cases and promote further technical development.”
So it is really clear his view on the issue. The central banker rejected the notion that cryptocurrencies could be compared to fiat money like the yen or the dollar by stating the latter are issued by central banks while cryptocurrencies do not see any issuer like a ‘central bank, corporation or a financial institution’ and therefore, according to Kuramoto, lacks a user’s trust.
He also pointed to the disgraceful robbery in January of Tokyo-based cryptocurrency exchange Coincheck where NEM tokens worth $530 million, at the time, were stolen. Masaki Kuramoto blamed Coincheck for fielding ‘insufficient’ fraud prevention safeguards while stressing that an investigation into the exchange and others are currently underway.
“Since Japan is known worldwide as a country where virtual currency trading is popular, there is the possibility that bad guys around the world will look at the virtual currency traded in Japan and get various skills,” the official added, reminding investors and adopters to be suspect of all the possible risks.