I know it has been said multiple times in the past but Bitcoin and other digital currencies are seeing some great success in Asian countries. This is not just because of their positive attitude towards doing business and adopting technologies at an early stage, but also because there are no plans whatsoever to regulate digital currency in Asia and by the look of things, Japan could be a very interesting country for Bitcoin.
Skepticism Due to Mt. Gox Fiasco
As soon as people hear about Japan tied together with Bitcoin or other digital currencies, they start talking about the infamous Mt. Gox exchange that stole a lot of funds from users around the world. Needless to say, this dark page in the history of Bitcoin [not just in Japan] will never be erased from our memory but the time has come to turn over a new page.
And that looks to be happening already, with a popular Bitcoin-related crowdfunding platform called BitFlyer. Even though there aren’t that many crowdfunding campaigns hosted on that platform just yet, BitFlyer is a name to keep an eye on over the next few years. But what else can be done to put Japan on the Bitcoin map?
Third Largest Economy in the World
Whenever people talk about the world’s largest economies, the same country names circulate over and over again. China, countries in the Middle East, Germany, the United States,…. But a little-known fact is that Japan is the world’s third largest economy; something you hardly ever see mentioned in financial reports.
Imagine if we could approach the world’s third largest economy from a Bitcoin perspective. Japanese people are keen on learning about new technologies so it could prove to be a huge market for digital currency in general. Singapore firm Quoine is very optimistic regarding the future of Bitcoin in Japan.
“When we thought about it, Japan is the third-biggest economy in the world, huge economy, huge market . . . nobody was really tapping that market from a bitcoin perspective after the fall of Tokyo-based Mt. Gox,” Mario Gomez Lozada, CEO of Quoine Pte Ltd. told DigitalMoneyTimes recently.
According to Mario Gomez Lozada, Quoine is different from other Bitcoin exchange platforms due to one major advantage. The company’s management team members all have a background in the finance industry as staff members have worked for well-known institutions such as HSBC, Credit Suisse, UBS and Merrill Lynch.
Because of that knowledge, the Quoine team members quickly recognized the potential offered by the Bitcoin blockchain, even to go as far as calling it “the future way of banking”. In fact, finance and banking is one of the very few remaining industries that has not undergone drastic changes over the last decade.
“Although the block chain technology is powerful and innovative, many bitcoin exchanges do not seem to possess know-how on operating online financial services. For this reason, I believe Quoine’s technological knowledge and experience can work to its advantage. From our technology perspective, the exchanges that existed (before us) were not built with banking processes in mind.”
Ever since Quoine decided to go after the Japanese market in terms of offering Bitcoin exchange services, the company has signed up nearly 6,000 clients to date. Quite an impressive number, considering how hard it is to penetrate the Japanese market as an outsider, especially when it comes to finances.
The current peak volume per day on the Quoine Bitcoin exchange is around 780 BTC; a number that has risen a lot compared to January of this year, when the peak daily volume was just 200 BTC. At this rate of growth, Quoine will start turning a profit within just a few months. The income generated by Quoine comes from commission on trades.
But that is not all, as Quoine is also in talks with a Japanese payment company in order to add Bitcoin payment options to their database of 20,000 merchants. Should this effort be successful, Bitcoin adoption and awareness would receive a tremendous boost from the world’s third largest economy.
Source: Japan Times
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