Bitcoin puts on many different hats, depending on which country it is related to. Some states see Bitcoin as a currency, others as a commodity, and most regions don’t even recognize Bitcoin at all. Things are moving in the direction of recognizing this disruptive technology as a currency with similar traits to fiat currency, though. A new set of bills has been approved by the Cabinet of Japan to recognize virtual currencies as a tool with similar functions to government-issued money.
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First and foremost, the established financial players – banks, insurance companies, and others – will be able to look into the technology that makes Bitcoin tick. Blockchain technology is of great interest to some of the world’s largest banks, yet things were quite different in Japan due to the impending regulation of the whole digital currency concept.
Now that the Cabinet of Japan approved a new set of bills to let banking groups expand their infrastructure through virtual currencies, things can be taken to the next level in Japan. There are plenty of benefits to be found in the world of blockchains, ranging from faster settlement to less overhead costs and automated smart contracts . But there is more, as this approval by the Cabinet of Japan grants banks permission to explore virtual currencies as well. This does not mean Japanese banks will suddenly flock to Bitcoin or any of the other existing open source digital currency projects. Instead, they will examine the technology, and determine whether or not they can use it to issue their own virtual currencies in the future. Even though the Bank of England recently voiced concern regarding central bank-issued Bitcoin clones , that […]
