Japan Finance Minister: bitcoin is not a reliable currency

Japan Finance Minister: bitcoin is not a reliable currency

A senior financial official of Japan expressed its position on bitcoin a year later, when cryptocurrency has become legal tender in the country.

According to reports by Reuters, today the Minister of Finance of Japan Taro ASO noted that bitcoin has yet to prove itself as a reliable currency in society. He also recognized that it would be to watch its progress in the future.

In an interview with Reuters after a Cabinet meeting, former Prime Minister ASO said:

“There is no precise definition whether it is currency or not. This is a complex issue… It is still not proved that it is reliable enough to be a currency, so I need a little more watching bitcoin”.

Taro ASO

These comments differ from the General position of Japan, which is one of the first countries in the world recognized the bitcoin as legal tender after the entry into force of the relevant legislation earlier this year. This recognition was sufficient for several ship trials with retail trade companies, including airlines, on the adoption of bitcoin in Japan. After the legal recognition of bitcoin local authorities of one of the cities of Japan started accepting donations in bitcoin to preserve the historic nature reserve.

Despite the status of the society for advanced technology, Japan lags far behind in terms of adoption of digital payments in comparison with China and Korea. Expensive process of implementation of terminals for card payments in a traditional infrastructure, based on cash, marks a relatively meager rate of adoption of digital payments company – only 19%. For comparison, in China and Korea more than 50% of the population use non-cash payment methods. As a result, the Japanese government resorted to a strategy of financial and technological growth, which is aimed at doubling the rate of adoption of digital payments in the next decade.

Japanese retail investors are also considered a significant factor in the striking increase in the price of bitcoin this year. Analyst at Deutsche Bank, in its statement for customers recently wrote: “We believe that Japanese retail investors move from Forex trading to trading cryptocurrency”.

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