Asia: cryptocurrency sentiments and reality
What could be a problem for a victorious procession of cryptocurrency? Experts would say — poor scaling, protocol vulnerabilities, imperfect networks, energy-intensive mining, hype...
This list is constantly updated, because the formation of the crypto sphere is still ongoing. However, there is a drawback, which is usually kept silent — non-uniform perception of cryptocurrency.
This affects many countries, and not only those in which the attitude towards crypto is very positive. Let’s consider the Asian direction as an example.
China is the largest market
For several years, the PRC has been blocking the work of crypto exchanges, investment platforms, and conduction of ICOs.
In this country only single projects, like e-Chat, get an absolute approval of the government. And the rest are satisfied with the status of promising startups. The focus is on financial and IoT areas.
The consortium R3 operates on the territory of the country, banks and organizations of which are actively implementing blockchain in their projects. There are also a lot of decentralized networks used to build the Internet of the future — Web 3.0.
But there are very few projects in the media field, like the popular e-Chat messenger. Most of them failed to unleash their potential due to the ICO ban. They didn’t receive approval and were even banned, as they related to a purely investment sphere.
Japan — a country of contrasts
The situation is similar in Japan. Despite the external serenity and positive attitude towards cryptocurrency, the situation in this country is not so good as well. The seeming crypto-friendliness is actually full of pitfalls.
One one side:
● In 2017, Bitcoin became legal payment instrument, due to which the Japanese Yen-BTC trading pair was considered the most popular crypto-fiat currency pair for a couple of weeks.
● FSA (analogue of SEC) has favorably reviewed more than 190 applications for opening licensed crypto exchanges.
And on the other side:
● Cash settlements continue to prevail in the country (65% of transactions).
● The Bank of Japan has repeatedly stated that it doesn’t make sense to switch to cryptocurrency payments massively because of the low demand for digital currency.
Therefore, the issue of national cryptocurrency, as, for example, in Venezuela, remains open. An alternative to the digital yen was offered by some local banks.
In 2019, the financial group Mizuho will release its cryptocurrency. As one of the world's largest asset management agencies, the company has $1.9 trillion at its disposal.
The J-Coin cryptocurrency is being created by a separate unit in cooperation with Japan Post Bank - the local counterpart of the R3 consortium, consisting of 6 dozen regional banks.
The token of the project will be pegged 1: 1 to Japanese yen. This will reduce volatility and transaction fees. The main purpose of the coin is to pay for goods and services, payroll, and work with QR payments on the Alipay platform.
It is the largest financial company in Japan and the fifth largest global bank, managing $2.7 trillion. The plans to create the MUFG Coin project were reported in the summer of 2018.
This is a coin backed by yen in a 1: 1 ratio. Last fall, it passed the test in the internal store for employees and showed good performance - convenience, low commission, and high speed of transactions.
Its mission is any daily payments and withdrawals. It also assumes the commercial potential in making cross-border payments. MUFG Coin will become part of the blockchain-based global payment network.
As we see, on the one hand, the countries that we considered in the article have negative attitude towards some aspects of the cryptocurrency sphere. On the other hand, innovative technologies are an integral part of their economy, culture, and lifestyle.
Projects such as e-Chat, MUFG, and J-Coin, allow solving many problems that cannot be solved under normal conditions. They contribute to scientific and technological progress and successful integration into the world community. They are the future!