The Chief Planning Officer for Financial Public Relations Central Committee of Japan’s Central Bank, Masashi Kuramoto published an educative article tackling the issue of cryptocurrencies: what they are, which is their value and how can we use them wisely and avoid frauds or thefts related to them. This article was published on this page, and it’s written in a rather educative style, to educate people on the issue of cryptocurrencies.
The author bases the writing of the article in the popularity of the cryptocurrencies, what made him try to help people to understand the subject at hand and try to prevent money loss due to lack of knowledge. It puts special attention on making people understand that bitcoin and cryptocurrencies are not foolproof investment instruments to get rich quick. It states:
…the price of the virtual currency does not necessarily rise, there is a possibility that one day suddenly it will be worthless at all”
The tone of warning that the article has is reaffirmed in its lasts sentences:
Japan is known worldwide as a country where virtual currency trading is popular, there is the possibility that bad guys around the world will look at the virtual currency traded in Japan and get various skills. When holding a virtual currency, you also need to understand these risks well”
The article seems to follow the trend of the Japanese government and the FSA (the financial Japanese watchdog) regarding cryptocurrencies since the NEM hack that shocked the industry this January. Since that incident, the FSA has implemented on-site security checks in all registered exchanges, and some had been persuaded to abandon the registration process voluntarily.
In that sense, the Bank of Japan is also educating the general population to have awareness about the whole concept of crypto, and to be cautious when doing business with it.