Fintech Revolution Gives Way to Virtual Currencies
Now, Japan’s financial industry regulator hopes relaxed rules on investing in financial ventures, and a new system for regulating virtual currency exchanges will pass through parliament by May—a first step in kickstarting the fintech revolution in the world’s third-biggest economy.
The changes, which will allow banks to buy stakes of up to 100% in non-finance-related firms, will free up Japan’s three megabanks to enter into tie-ups with fintech ventures developing services including robotic investment advisory and blockchain, the decentralized ledger technology behind the bitcoin digital currency.
Japan is world’s third biggest economy. However strict financial regulation, easy access to credit due to very low interest rates, weak demand for innovative financial services and risk averse population had not allowed new technologies to have easy flow through Japanese financial market. Now Japan is set to ease investment restrictions that could free up the flow of capital in an economy sitting on an estimated $9 trillion in individuals’ cash deposits.
It is now expected that Japanese Fin tech start ups could jump to over a half billion dollars by 2020 as the use of technology such as blockchain increases. This has been reported by Yano Research Institute.
Block Chain Technology has lot to offer Fintech Ventures
Block Chain Technology, the main technology behind Bitcoin, is not only being used for Bitcoin or generation of Virtual Currency but the technology finds its use in various other applications in the field of Medicine, Digitalization of Documents, Sales and Purchase of Digital Assets, Escrow / Custodian service etc. Block Chain Technology is definitely the new revolution of 21st Century and thereby welcomes many Fintech Ventures.
source : http://fortune.com/2016/03/27/japan-fintech-revolution