Japanese Official Addresses Crypto Concerns, Russia’s Central Bank Considers Blockchain and Market Dips Again


By Samuel Mowers at Investorideas.com

Japanese Official Addresses Crypto Concerns, Russia’s Central Bank Considers Blockchain and Market Dips Again

The Chief Planning Officer for Japan's Financial Public Relations Central Committee, Masashi Kuramoto, produced a Q&A addressing cryptocurrencies recently, in which he addressed many concerns about the phenomenon.

Kuramoto denied that cryptocurrency could be considered "money" in the way fiat currencies are, as they are not issued by a central authority.

"...it is legally stipulated that the "money" (yen) we use everyday is issued by the central bank of the country, the Bank of Japan, and it can be used as a currency in Japan. In other words, "money" we are using all the time is backed by the credit of the country, so anyone can use it with confidence. On the other hand, "virtual currency" does not support such a law. Also, in many cases, there is no issuer such as a central bank or a corporation or a financial institution, so that nobody has confidence in that trust, it can be said that it is different from "money."

Many in the space may argue that it is precisely the decentralized nature of crypto that makes it more trustworthy than fiat. Kuramoto goes on in the piece, however, to encourage the use of crypto as an actual currency, as opposed to merely speculating, and warns investors of potential risks in the space.

According to TASS, Russia's central bank is considering using its Masterchain ethereum-based blockchain system to handle payments within the Eurasian Economic Union (EAEU). Russian Central Bank First Deputy Chairman Olga Skorobogatova said:

"We are currently discussing the possibility of creating new technologies for transmitting messages and payments across the EAEU as a supranational infrastructure. It would enable us to use blockchain's distributed ledger technologies within the EAEU's space, settle payments and transmit financial information sidestepping current payment systems."

Bitcoin (BTC) seems unable to continue its steady recovery from last week's slump. Though trading at roughly $7400 USD yesterday, the flagship cryptocurrency is down to about $6870 USD at press time. This is a 24-hour drop of around seven percent. All of the major cryptocurrencies have registered a similar sized drop in the last day with the total market cap sinking around $20 billion USD.

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