The Central Bank Official In Japan Says It Is Important To Try Using Cryptos

The central bank of Japan has revealed some of the insights in its published general Q&A related to cryptocurrencies. Earlier on March 30, the Chief of the Bank of Japan’s Financial Services Information Division Masashi Kuramoto has published a summary Q&A entitled “Let’s think about cryptocurrencies!” The document is available for the general public on the educational site operated by the central bank.

The Japan Central Bank has revealed some of the insights in its published general Q&A related to cryptocurrencies. The Chief of the Bank of Japan’s Financial Services Information Division Masashi Kuramoto has published on March 30 a summary Q&A titled “Let’s think about cryptocurrencies”.  Central bank made the document available for the general public on the  educational site.

The report provides a brief and simple summary of responses to frequently asked questions (FAQs) related to cryptocurrency market. A few questions are connected to the cryptocurrency usage in the real world. The other questions also address cryptocurrency profitability as an asset.

One of the questions, which is worth to highlight, states the following: “Shouldn’t it be better to ban something we don’t understand?”.

Kuramoto answered to this, that cryptocurrencies yet haven’t reached their purpose, which is cheaper remittance and social activities. The official added that cryptocurrencies could emerge as e new way to simplify people’s lives.

The central bank official has 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.”

Also he has removed the fact that digital currencies could be compared to fiat money, such as dollar or yen. He noted that the latter group is backed by central banks while cryptocurrencies do not regard any issuer as a ‘central bank, corporation or a financial institution’. According to Kuramoto’s view, cryptos lack users’ trust.

Then he continued by stressing the Coincheck hack. He blamed the exchange for having insufficient preventing measures. He said:

“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.”

Kuramoto has finally repeated that investors and adopters need to exercise caution.