The highest financial institution in the Asian country issued a statement expressing that they will create a legal framework regarding the creation and issuance of their cryptocurrency.
After some research carried out by the Institute of Financial Investigations of the Central Bank of Japan, it was recently announced that they have developed a report that shows the deep interest of the government to create a legal framework according to the new times, which may regulate and control the emission of cryptocurrencies.
The government showed a deep interest in the complex issues that revolve around cryptocurrencies as well as its blockchain environment, which is why it was reported to be focused on the legal issues that must be resolved before the issuance of digital currency.
The publication of the report focusing on cryptocurrencies goes hand in hand with the interest of the Japanese government to reduce the use of cash and to adapt its financial system with innovative technologies, as well as accelerate the development of electronic banking in the country.
It is important to clarify that the report is contrary to the official opinion of the Central Bank, and that this time it will only work as a result of an investigation on these technological areas, which seeks to propose solutions to the problems in the electronic financial platform, related to the use of digital currencies and their regulation.
Currently, only the use of the official currency of Japan in cash mode is legally regulated and authorized, so this report clarifies that an update of its monetary legislation should be made.
Among the main problems that the report seeks to solve are the direct fight against money laundering, as well as the strengthening of its security and the verification of customer identities. These solutions can be used by the banks themselves for the improvement of electronic transactions and for the use of a possible digital currency issued by the country.
Japan Among the Countries Looking for Innovation in the Creation of Digital Coins
Japan has been making significant efforts to create a blockchain network which allows improving national and international financial transactions, to these efforts are added initiatives to create a digital currency that could be quickly accessible to customers in a new electronic banking system for the Asian country.
China has advanced in developing a blockchain system that can provide support for a cryptocurrency that can be used by various companies in the financial flow even with rural employees in some agricultural sectors.
In this regard, Changchun, who is the Director of the Digital Currency Research Institute of the Central Bank of China, said that it is absolutely necessary to continue with the research and development of this technology, due to the exponential increase in trade that has had the Asian country in the last decade.
These Asian countries are not the only ones that have involved blockchain technology in their financial system. Recently, Venezuela has sought to expand the “power” of its cryptocurrency and involve it much more in national banking, public processes, and in its natural commercial system.
By María Rodríguez
