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The Bank of Japan noted last month that initiatives to test its digital yen currency are underway.
As the Bank of Japan (BOJ) plans to issue its digital yen in the near future, Oki Matsumoto, head of Japan’s Monex Group, believes it will significantly revolutionize the crypto industry by making it more interoperable with legal tenders.
“Central bank digital currencies will help boost trading of cryptocurrencies by providing a more convenient platform for converting cryptocurrencies into legal tenders,” Matsumoto noted.
According to Matsumoto, the issuance of central bank digital currency (CBDC) is not a threat to the crypto industry but a major boost to the whole sector. Primarily due to the fact that it will not only make the ecosystem more efficient but also a digitized economy.
Speaking to news outlet Reuters on Tuesday, Matsumoto noted that “CBDCs will significantly enhance the interoperability of cryptocurrencies.” Moreover, the central bank digital currency would make the crypto market more lively. The lively atmosphere in the crypto market would reciprocate to an increased volatility, particularly to the upward trend.
Currently, changing crypto assets to legal tender has several challenges as the existing exchanges and brokers do not hold bank accounts. According to Matsumoto, if the bank of Japan issues a digital yen, then it would make the crypto conversion to legal tenders much easier and faster.
Monex Opinion on Digital Yen
Apparently, the Bank of Japan noted last month that plans are underway to experiment its digital yen currency. Hereby joining other global central banks in the development of a viable digital currency.
Notably, the Chinese government through the Bank of China has made tremendous progress in rolling out its digital yuan in the Chinese market.n It is expected that the first successful digital currency would have a vented vantage point to act as the global reserve currency. China is rushing to implement its digital yuan in a bid to dethrone the United States dollar from the global reserve currency.
Japan is considered a crypto friendly market, whereby it has a huge portion of the top digital assets. It’s worth mentioning that Ripple has named it as one of the options to move into if the United States does not reorganize its crypto regulations.
Being a major Asian economic hub, Japan’s continued venture into the crypto and digital currency market will significantly shift other regions in adopting the technology.
This is because the blockchain technology has many use cases including in the supply chain where shipping industry collaborate with respective parties to make a seamless trading process.
As the cryptocurrency industry led by Bitcoin enjoys a new bull wave, wealth creation is expected to be taken on the next level by the digital assets investors.