Cryptocurrencies May Become Global, but are Unlikely to Replace the US Dollar

Cryptocurrencies May Become Global, but are Unlikely to Replace the US DollarCC0 / Namecoin / Cryptocurrency Art GalleryWorld11:39 14.11.2017(updated 13:12 14.11.2017) Get short URL1106
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Digital currencies, also known as cryptocurrencies, have no material form. Recently they have become very popular globally, but remain unlikely to surpass the US dollar.

TOKYO (Sputnik) – According to Mike Kayamori, the CEO of Japan’s Quoine, a fintech company that owns the Quoineх cryptocurrency exchange, cryptocurrencies may become global but are unlikely to overtake the US dollar.

Bitcoin can be compared to precious metals, such as gold, but is easier in use, the Quoine CEO added.

“I do not think there is someone, a government, or a bank, or a central bank that can shut down Bitcoin. Gold is very difficult to carry around, but if I have bitcoin I can send it to you. I think it is as superior version of gold,” Kayamori explained.

READ MORE: ‘Russia Can Convert Electricity Into Cryptocurrencies’ – Venture Investor

Central banks worldwide have treated the phenomenon with caution, although some have started exploring the possibilities it offers and even developing their own cryptocurrency.

Cryptocurrencies’ market requires state regulation “because national currencies are controlled by their nation … So every country is going to start regulating its exchanges … There will be a regulated market and I think it is a good thing,” Kayamori said in an interview.

He noted that Japan had become the first country to regulate the cryptocurrencies market, while South Korea could become the next one since the government was expected to introduce regulations early next year. The Quoine CEO also pointed out that customers had begun to trust his company more after the Japanese government passed the regulations.

“We are a financial institution now. Not at the level of a bank, but our customers feel more secure and safe,” Kayamori said, adding that the Quoinex transaction volume totaled $7-8 billion dollars in October.

READ MORE: Russian Finance Minister Hopes to Begin Regulating Cryptocurrencies in 2018

Also Kayamori said that Japan-based Quoine is ready to “work with someone in Russia where we can provide technology and the platform … We do not operate in Russia, because we do not know what the local regulation is. Everything that is unknown is a risk. So we would like to partner with a progressive Russian company that is interested in cryptal. But most important is the government having consistency, making sure which is good and which is not.”

“The Russian government and Russian institutions should actually look at Japan, should look at what the guidelines are, what the provisions are, and transfer [them] to Russia,” Kayamori stressed.

When commenting on fears among some people about cryptocurrencies being a scam or a financial pyramid, Kayamori recommended purchasing cryptocurrencies only at exchanges that were regulated by the government.

In April 2017, Bitcoin was recognized as legal tender in Japan. In late September, the Japanese government and its Financial Services Agency (FSA) officially authorized and licensed 11 domestic cryptocurrency exchanges, including Quoineх.

Source.