“Cryptocurrencies aren’t legal tenders and don’t have assets to back up their value… Some people say they should be described as crypto-assets, not cryptocurrencies,” Haruhiko Kuroda, Governor of the Bank of Japan.
Haruhiko made this statement during a session in parliament on Tuesday where he said cryptocurrencies are not a threat to the Yen and he doesn’t see them as a danger to existing legal tenders anytime soon.
He also added that cryptocurrencies are mostly used for speculative trading rather than a means of payments. It is also reported that the Bank of Japan is monitoring cryptocurrencies to ensure they do not “erode public trust” on existing settlement systems the bank currently oversees.
on the contrary, it just a matter of time before we see more payments and transactions being done in Bitcoin and cryptocurrencies. According to a recent poll conducted by John McAfee, 58% of over 45,000 poll participants currently see cryptocurrencies as an investment rather than a means of payment.
We do believe such numbers will change once key elements are put in place that will facilitate cryptocurrency use as a means of payment. Bitcoin, for example, saw its transaction fees skyrocket with its processing time for transactions increase last year, a problem which is being addressed.
Also, few businesses accept cryptocurrency payments though the number keeps rising. Many businesses are busy trying to understand them while others are waiting for them to be less volatile before they step in. It is expected that when more players start accepting Bitcoin and cryptocurrencies as a means of payment, such numbers and comments like those from the governor of the BOJ will change.
Nonetheless, Japan is currently known to be one of the most crypto friendly nations in the world as cryptocurrencies have been regulated by the government and increasing number shops and businesses in the country accept Bitcoin and other altcoins as a means of payment.
BOJ thinks cryptocurrencies are not a threat, do you think they have a reason to worry about cryptos?
Let us know your thoughts below.