Japan officially recognizes Bitcoin, boosting cryptocurrency's growing role in trade

Rage Review : Recently, Japan has passed a law formally recognizing the legal status of Bitcoin as a payment method. This move has opened up new opportunities for the Bitcoin ecosystem and started a conversation about the future of cryptocurrency in international trade. Although more than 20 million people around the world use Bitcoin, its distribution is mainly concentrated in Europe and the United States. Recently, many countries, including China and Australia, have taken actions to study Bitcoin and blockchain technology, laying the foundation for the use of cryptocurrency in international trade.

Translation: Clover

Japan recently passed a law officially accepting the cryptocurrency Bitcoin as a legal payment method. This move has opened up new opportunities for the Bitcoin ecosystem.

The Japanese government recently officially recognized Bitcoin as a legal payment method, triggering a sudden surge in the price of Bitcoin and opening up conversations about the future of the currency in international trade.

In October 2016, Japan decided to lower the 8% consumption tax levied on purchases of Bitcoin in virtual currency transactions. Now, with the legal status of Bitcoin firmly established in Japan, it is expected to trigger large-scale adoption of Bitcoin.

According to Nikkei Asian Review, two major Japanese retailers have announced cooperation with Bitcoin exchanges, and it is expected that 260,000 stores will adopt this currency this summer. One of the retailers, Bic Camera, will encourage its customers to use Bitcoin to purchase goods up to 100,000 yen (about 904 US dollars) and will provide the same reward points as traditional payment methods.

As mentioned above, the announcement triggered a rally in Bitcoin prices, but there is still a lot of work to be done before Bitcoin can be widely adopted. An official memo from the Financial Services Agency of Japan stated that specific requirements will be implemented for Bitcoin transactions, and employees will need to undergo special training to process transactions.

Other countries have also begun to take action and study Bitcoin. In December 2016, the Australian Accounting Standards Board (AASB) released a document calling for new standards for digital currencies such as Bitcoin and trying to define whether they should be considered tangible assets.

In January 2017, the People's Bank of China officially encouraged individuals to invest in Bitcoin. But at the same time, it emphasized that Bitcoin is not an official currency and cannot be circulated.

According to the Nikkei Asian Review, more than 20 million people around the world use Bitcoin, with the majority living in North America and Europe. However, recent moves by Japan and China, as well as research by countries like Australia, may increase the likelihood that Bitcoin will be used more frequently in international trade.

It’s important to note that Bitcoin is still a very new technology, and not everyone trusts the technology. Investopedia points out that the bankruptcy of Tokyo-based Mt. Gox exchange did much to undermine trust in the digital currency itself and highlighted some of the inherent risks of its deregulated nature.

In addition, many countries still do not support Bitcoin. For example, Russia and Bangladesh do not consider cryptocurrencies legal, while other countries allow holding Bitcoin but cannot trade it.

Bitcoin has enormous potential to disrupt financial markets. However, the greatest value of Bitcoin and its underlying ledger technology lies in their inherently decentralized nature. Large vendors are trying to turn these products into sellable services so that they can ultimately capture their core value through centralized and strict regulation.

Three highlights for readers

Japan has moved to make Bitcoin a legally recognized method of payment after lowering its 8% tax on Bitcoin exchanges last year.

Other countries, including China and Australia, have taken steps to study or exploit Bitcoin, laying the groundwork for the use of cryptocurrencies in international trade.

As large organizations get involved in Bitcoin and blockchain technology research, they may undermine the core values ​​of the technology, which are decentralization and lack of regulation.