Japan’s ‘dormant’ crypto accounts are starting to see activity as Bitcoin broke through a critical level of price resistance this week. According to Japanese crypto exchange Coincheck, their trading volume this week has increased two to three times over the previous one.
Speaking to a number of Japanese outlets, Yusuke Otsuka, the co-founder of Coincheck explained that existing users who had not traded for some time became active again this week: “Some of our users have already counts, so muzzle velocity is high. ”
If users already have accounts, they don’t have to take the time to go through Know Your Customer verification to open new accounts and can immediately resume purchasing cryptocurrency. In contrast, newcomers to the trading platform had to wait for their account to be approved, so there was a delay before they could start trading. “This time it’s different,” Otsuka said.
According to Coincheck, the volume of direct selling this week was twice as large as the previous week, while demand for the exchange service tripled. Otsuka also believes this correlates with the Japanese Coivd-19 stimulus payouts. In April, the Japanese government began distributing 100,000 yen – about $ 930 – to each household.
Additionally, Oki Matsumoto, CEO of Monex Group, a parent company of Coincheck, points to the possibility that those who missed out on buying gold are now interested in Bitcoin. The price of gold has recently risen, breaking previous highs as Bitcoin had just started to break resistance earlier this week.
Balance on the agenda
Matsumoto also commented on the recent development of central bank digital currencies:
“I think David Marcus made a mistake. He should have said it was Facebook Token. Because they said it was “the future currency”, the US government sharply criticized it. “
Matsumoto added that “Libra’s role could just be to open Pandora’s box and that was it.” Meanwhile, the United States is behind the competition precisely because “they crushed Libra on their own and could no longer say that they would start developing the CBDC,” Matsumoto analyzed.
Some industry insiders are concerned about America’s reluctance to move forward with the CBDC. Takaya Nakamura, an executive at Japanese crypto exchange Fisco recently said that Japan’s role should be to urge the United States to take CBDCs more seriously.