Japan Is Just One of Many Countries Exploring Digital Currency
Some global banks have been hesitant to enter the cryptocurrency market for good reasons. Major institutions have been waiting it out to see if digital currency will indeed be around for the long-term. And while some locations have been hosting crypto exchange platforms for years, others are finally starting to catch up.
The Bank of Japan has been exploring with a digital Yen to try and emulate how digital currency would fare. Japan has recognized the need for a currency that can be used without contact as the world deals with COVID-19. But there are some major considerations, including:
• Not every citizen has access to a smartphone to use digital currency
• The ability to access cryptocurrency offline is important if systems go down periodically
• Many citizens, like seniors, use cash on a daily basis for daily living
• Current cryptocurrency laws and regulations
Overcoming these obstacles might be a turning point for the Bank of Japan to begin recognizing cryptocurrency as a payment. While it seems that China has already been working on digital currency, Japan isn’t too far behind them.
Cryptocurrency Isn’t Going Anywhere
As technology advances and the world deals with the current Coronavirus pandemic, digital currency becomes more essential now than ever. Consumers are making more online purchases and touchless transactions, giving cryptocurrency fuel it needs to gain grand worldwide popularity.
Recently, the head of Visa’s crypto projects was stated claiming that one of the most important future trends is cryptocurrency. Major financial institutions are seeing the benefits and possibilities with digital currency and what the future holds for the market. Many speculate that the recent worldwide Coronavirus pandemic scare is forcing cryptocurrency into the limelight.
Major Players in the Finance World Are Jumping on Board
Japan isn’t the only location that doesn’t want to get left behind. Another major player in the finance world, Wells Fargo, is now dabbling in its very own digital currency. This proprietary digital asset is known as Wells Fargo Digital Cash and aims to create faster and easier transactions.
Jumping on board with the blockchain technology, Wells Fargo has made a name for themselves in the cryptocurrency market. By making this bold move, other large names in finance need to re-evaluate their positions on digital currency.
Major Legal Hurdles for Digital Currency
Having countries adopt digital currency as a legitimate means of payment isn’t as easy as one may think. There are numerous hurdles that need to be addressed in terms of legality and regulations before users can utilize cryptocurrency. While some countries have strict regulations in place, others are very relaxed on crypto laws, making worldwide trading difficult.
As time progresses and more major financial institutions adopt digital currency, laws will begin to mesh together. In a perfect world, every country will realize the importance of cryptocurrency and introduce it to local users. One can only hope that as the popularity increases, so will the number of countries that recognize digital currency.