XRP, the native digital asset of Ripple, has emerged as the most popular cryptocurrency in Japan, according to a recent report by crypto market expert Burina Fujiwara from Hong Kong’s City University. The report highlights Japan’s regulatory framework, specifically the Payment Services Act (PSA) and Financial Instrument and Exchange Act (FIEA), as key factors contributing to the country’s position as a crypto powerhouse.
Japan’s regulatory framework has provided a clear and favorable environment for the crypto market to thrive. Other countries can look to Japan as a precedent for handling the crypto market. The regulatory framework has helped establish trust and stability in the Japanese crypto ecosystem, attracting both investors and users.
In February 2022, Japan witnessed the trading of 1.36 billion XRP tokens, far surpassing the 186 thousand Bitcoins traded during the same period. This statistic clearly indicates the popularity of XRP in Japan and its dominance in the country’s crypto market.
One of the reasons for XRP’s popularity in Japan is its function as an intermediary asset between currencies. Given Japan’s large number of foreign workers, who send significant amounts of money back to their home countries, the importance of an efficient, cost-effective, and fast intermediary like XRP cannot be overstated. XRP provides a solution for these foreign workers, enabling them to transfer money internationally with ease.
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Additionally, Ripple’s partnership with Japan’s SBI Group has played a crucial role in establishing XRP’s position in the country’s crypto space. The report mentions that SBI invested $300 million in Ripple back in 2017, solidifying the collaboration between the two entities. This partnership has not only boosted XRP’s popularity but has also facilitated its adoption in various industries within Japan.
Furthermore, a survey conducted by BITMAX revealed that 25% of the 1,498 respondents favored XRP, making it the second most favored cryptocurrency in Japan, just behind Bitcoin, which was favored by 26% of the respondents. Interestingly, Ethereum (ETH) trailed behind with only 9% of the respondents showing preference for it. This indicates that XRP has gained significant recognition and acceptance among Japanese cryptocurrency enthusiasts.
At present, XRP is trading at $0.49, and its price has remained relatively stable over the week. Despite its price stagnation, XRP’s popularity and utility as an intermediary asset continue to attract users and investors in Japan.
In conclusion, Japan’s regulatory environment, along with its large population of foreign workers and strategic partnerships, has contributed significantly to the popularity of XRP in the country. XRP’s role as an intermediary asset and its efficient transfer capabilities have made it a preferred choice for international remittances. With its steady trading volume and strong market position, XRP is likely to continue its dominant presence in Japan’s crypto market.
