Japan has always been on the top of its game when the innovations are in question. If we were to give the description to each country Japan would be definitely a tech-savvy nation. Some of the innovations that emerged in Japan are the bullet train, pocket calculator, Walkman, blue LED light and Android Robots. Japan shows once again its innovativeness by adopting pro-tech legislations that in turn persuaded big retailers to join the crypto revolution. Effect of this is that cryptocurrencies are no more part of some kind of high tech wizardry, but simply component of everyday life.
Japan's post-war economic miracle has its roots in the legislation that dated back in the 1940s. The government targeted pro-tech legislations in order to make Japan home to a lot of tech giants. This plan was a major success. Now, a similar thing is happening in the world of cryptocurrencies in Japan.
It first started with small business owners trying to showcase their uniqueness by accepting payments in cryptocurrencies. This was followed by big retailers entering the market and kick-starting a crypto revolution. All this wouldn't be possible without flexible regulations of cryptocurrencies by the Japanese government. While the government of China and USA adopted restrictive laws regarding the crypto world, Japanese government continued its innovative trend. New pro-crypto laws made Japan a crypto haven.
Present Stance toward cryptocurrencies in Japan
As Investopedia reports “Some 3.5 million Japanese were trading cryptocurrencies on 17 domestic exchanges as of the end of March, according to a new report from the country's financial watchdog. The research showed that 84% of the traders were between the ages of 20 and 40, supporting the notion that much of the country's crypto frenzy has been fuelled by a jump in trading activity by millennial-aged investors.”
There is a deep understanding of cryptocurrencies by the general public in Japan. After a hack of Japanese cryptocurrency exchange Coincheck in January, people did not turn their heads away from cryptocurrencies. Now, there are 16 major crypto exchanges in Japan with 16 more awaiting clearance.
Reasons behind Japanese crypto boom
“Lost Decade” is a period of economic stagnation in Japan following the Japanese asset price bubble collapse in late 1991 and early 1992. After the post-war economic miracle, last 15 years were a period of stagnation or relatively low growth. So, the formula is: low growth coupled with high savings rates and with the addition of general understanding of cryptocurrencies is what made cryptocurrency investment attractive option both for the people and huge retailers.
Just some of Japan's giants that entered or are entering cryptocurrencies are Yamada Denki, SBI, DMM, BIC Camera, GMO Internet, Monex, CyberAgent, Line, and Rakuten. This all shows that there can be achieved a consensus about cryptocurrencies between big companies, government, and the general public. Japan can be an interesting role model for future regulations of crypto space in other countries. With its flexible regulations, Japan is set to dominate future cryptocurrency market.
What do you think about the implementation of cryptocurrencies in everyday life? Post your opinion in the comments below.