Cryptocurrencies could become much more important in the future once the COVID-19 crisis reaches an end. During the last years, digital assets have been expanding and providing services to users and also to traders. Japanese officials have been talking and discussing how Bitcoin and cryptocurrencies would play a more important role in the future.
Cryptocurrencies Could Become More Important
Japanese officials have been talking about how digital assets could gain prominence in the post-COVID-19 world. The Japanese Senator Otokita Shun, a recognized member of the Tokyo Nippon Ishin’s Committee on Financial Affairs, mentioned that it could also be a good moment for positive improvements in taxation and other regulations.
He wrote on Twitter that digital assets will be more important for the economy. Furthermore, blockchain technology is also going to be more important with improvements in taxation and regulation in the market. This would make innovation easier for entrepreneurs and companies that play a key role in the market.
It is worth mentioning that Japan has already implemented different regulations for the cryptocurrency industry. These measures include controls on crypto exchanges, licenses to those offering trading services in the space, and many other things. This aimed at reducing the number of scams that took place in the market during the 2017 bull run and Initial Coin Offering (ICO) craziness.
Otokita Shun considers that there are many obstacles in the country related to virtual currencies and how they cannot have the necessary place to grow. This includes the way they are regulated, the taxes that apply and more. It is worth taking into account that during 2017, the Japanese economy expanded 0.3% more in 2017 due to the growth of cryptocurrencies.
This shows virtual currencies could play a very important role in the economy and the economy of one of the most powerful countries in the world. In the future, the intention seems to be to profit even more from the expansion of both virtual currencies and distributed ledger technology (DLT).
Several countries are meanwhile working on different blockchain solutions to track the expansion and the effects of Coronavirus in society. This could be very useful in the future to track other viruses and information from citizens.
Nowadays, Bitcoin and other virtual currencies are also used in some countries to escape currency controls and oppressive governments. Some examples of this include Argentina and Lebanon, two countries affected by a financial and economic crisis.