Bank Of Japan Acknowledges Bitcoin’s Presence, Admits Cryptos Could Diminish Financial Role
The deputy governor of the Bank of Japan, Masoyoshi Amamiya, has recently revealed how the banks view cryptos during a lecture meeting at the Japan Society of Monetary Economics. The banker has affirmed that it is debatable whether cryptos have any serious merit to improve the existing financial system.
According to it, he does not know whether they can be able to contribute to improving the efficacy of the financial policies of even give some stability to the system as they are notoriously volatile.
Despite the somewhat negative stance on how the bank views the cryptos, the banker admits that, in case they are successful, they could sharply reduce the ability of the bank to steer the economy and would make it lose power.
Part of the ideological bias of the crypto world is, as you probably know, to remove as many intermediaries as it can, however, it is also debatable how good a decision is to remove a stable bank from a stable country in order to leave all the economy in the hands of a worldwide currency system that is not too concerned with local issues.
A Wide Barrier Of Entry To Prevent Crypto Adoption
Masoyoshi did not seem too worried about cryptos would be any risk to the bank, though. According to him, there is a wide barrier that prevents the major adoption of cryptos and that it is very hard to popularize them as a payment system. He did not cite many of the issues, however.
Despite the position of the bank, the country has been very pro-crypto in the sense that Japan is trying very hard not to get in the way of innovation and only providing a necessary framework for legislative changes and to make the crypto ecosystem really work in an organized way in the country.
The Financial Services Agency (FSA) of Japan has been introducing stricter legislative guidelines after one of the biggest hacking attacks in recent history made Coincheck lose half a billion USD recently, so while the position of the agency is very reasonable, it is harsh on the regulation to prevent the losses from investors while protecting the potential of the market.