Prime Minister Abe mentions cryptocurrencies! Will the nationwide move toward cashless payments, driven by decisions such as the Tokyo Olympics and Osaka Expo, boost the spread of cryptocurrencies?
On November 26, the Senate Budget Committee held a plenary session and received questions regarding “cryptocurrencies and blockchain.” Prime Minister Abe mentioned the “future prospects of blockchain.”He referred to the future potential of blockchain.
Prime Minister Abe’s responses on cryptocurrencies at the Senate Budget Committee
On November 26, a plenary session was held at the Senate Budget Committee, and Mr. Kenji Fujima, an expert on cryptocurrencies and blockchain, asked questions of Prime Minister Abe.
The following is the video of that session. (The answers regarding cryptocurrencies and blockchain startat 2:57:16)
Mr. Kenji Fujima is a member of the Japan Restoration Party in the House of Councillors and is active in advocating tax reforms for cryptocurrency.
He also drew attention by saying in an interview with the cryptocurrency news media CoinPost that “simplifying the tedious tax procedures is an urgent necessity.”
Back-and-forth between Prime Minister Abe and Representative Kenji Fujima on cryptocurrencies
The following summarizes the exchanges between Prime Minister Abe and Representative Kenji Fujima.
Also, below is an excerpt and summary of only the answers related to cryptocurrencies and blockchain; for the complete exchanges, please view the aforementioned video.
In April 2016, a report from the Ministry of Economy, Trade and Industry stated that the market size for cryptocurrencies and blockchain reached 67 trillion yen.
Blockchain is the future lifeblood of Japan, but currently, the cryptocurrency, which is inseparable from blockchain, faces many tax-related issues.
For the sake of Japan’s future, we must avoid “killing” cryptocurrencies through tax policy.
Regarding this, please tell us how you will demonstrate leadership and undertake tax reform.
On the taxation issues related to cryptocurrency income, I will respond as the Finance Minister (Deputy Prime Minister Aso).
There are observations that blockchain technology and cryptocurrencies can be utilized in various ways beyond finance.
We expect various actors to challenge themselves in using them to improve corporate productivity and service quality.
Will nationwide “cashless” progress give cryptocurrencies a boost?
Japan is expected to see an increase in foreign tourists due to decisions such as hosting the Tokyo Olympics and Osaka Expo, and at the same time cashless demand is expanding.
- Current state of cashless payments in Japan and comparisons with other countries
- Cashless acceleration! What is the impact on cryptocurrency adoption?
Let’s examine each in detail.
Current state of Japan’s cashless society and comparisons with other countries
The Nomura Research Institute’s 2017 report titled “Domestic and international awareness of the cashless pushshows that Japan’s cashless payment share has lagged far behind other countries.
The image below shows the trend of cashless payment rates in Japan (2008–2016).
Source:Current status and promotion of cashless payments
Next, please view the following image.
Source:Domestic and international awareness of cashless promotion
From the above images, Japan’s cashless ratio rose by onlyabout 6.2% over roughly nine years since 2007, while many Western countries such as the United Kingdom recorded double-digit increases.This indicates a marked difference.
Additionally, among Asian countries, such as South Korea, the growth rate was34.6%, and the cashless ratio reached96.4%as of 2016, which is an astonishing figure.
Cashless acceleration—what about its impact on cryptocurrencies?
In the previous images, the story continues....Continue here ↓
