Japanese Bank Explores Blockchain to Help Restore Bitcoin’s Reputation After Mt. Gox Incident

Rage Comment : Japan is one of the first countries in the world to manage Bitcoin as a currency, and it is also one of the largest foreign exchange markets. This is because the transaction fee of Japanese exchanges is 0%, so its market environment is very competitive. However, as more and more Japanese companies and financial institutions believe that Bitcoin and blockchain are the "next big hit", people's misunderstandings about Bitcoin have gradually been eliminated. Bitcoin, which was once considered black money, is now considered a legal currency.

Translation: Nicole

Coincheck, the industry-leading Asian Bitcoin exchange launched in 2014, has been at the top of the industry like a drama. Mt. Gox, led by Mark Karpeles, is on the verge of bankruptcy. Media attention to this matter is at an all-time high, especially in Japan, where Mt. Gox is headquartered. Media reports often mislead people into thinking that the collapse of Mt. Gox is related to the digital currency Bitcoin.

Kagayaki Kawabata, head of business development at Coincheck, told CNN:

“The reports from various Japanese media have caused Japanese people to have misunderstandings about Bitcoin, and they think this is the reason for the collapse of Mt. Gox.”

He also said:

“Many Japanese people think Bitcoin is a digital currency used by criminals. But surprisingly, Bitcoin, which was once considered black money, is now considered a legal currency.”

As elsewhere in the financial world, Japanese financial institutions are taking blockchain technology seriously and trying to test its uses, which could lead to a shift in the perception of bitcoin away from its links to criminal society.

Kagayaki Kawabata

Mr. Kawabata said:

“Back in the day, most banks wouldn’t even allow us to open our bank account because it was a ‘bitcoin business.’ But now things have changed as some banks have started to recognize its potential. We are very surprised at how much the Japanese view of Bitcoin has changed in just a few years.

Coin Check remains neutral in the blockchain size debate, arguing that many companies and fintech institutions believe that Bitcoin is the “next big thing.”

He said:

“However, while Japanese people think Bitcoin is getting better than before, there are still a few people who still do not trust Bitcoin at all. Even if someone knows about Bitcoin, they just think it is another form of digital currency (Suica, prepaid card). However, recently major Japanese media have started to pay attention to Bitcoin and popularize Bitcoin to ordinary people.”

Coincheck's focus is to create an easy-to-use platform for Japanese customers to trade Bitcoin, which requires a Japanese ID. The exchange is not designed for high-frequency Bitcoin traders or professional users, but is suitable for smaller-scale transactions as well as individual users.

Mr. Kawabata said:

“The Japanese bitcoin market is a unique market due to its fiercely competitive market environment, bitcoin regulation, and user characteristics.”

Japan is one of the first countries in the world to regulate Bitcoin as a currency, he said:

“The Japanese government is supportive of Bitcoin and cryptocurrencies.”

Mr. Kawabata claims that Japan is the second largest Bitcoin market in the world. “Most Japanese exchanges have 0% transaction fees, and this competitive market environment has contributed to Japan’s position. Japan is known as one of the largest foreign exchange markets.”

He said a certain percentage of forex traders have moved to bitcoin trading, which in turn has helped boost bitcoin prices in Japan.

“As a world-leading cryptocurrency nation, it will be interesting to see how Japan develops bitcoin adoption.”

Coincheck claims to have provided Bitcoin payment services to over 3,300 merchants in Japan and announced a partnership with an electric power company to allow Japanese people to pay their electricity bills with Bitcoin.

Mr. Kawabata said:

“We believe that in a few years, even ordinary people will find Bitcoin to be a revolutionary technology.”