DeCurret “Suica” Considers Crypto Asset Charges! Will it be a Catalyst for Promoting Digital Money?
Crypto assets can be charged to electronic money by means of Bitcoin or Ethereum. In the future, such charge methods may become widely adopted in the future. DeCurret, which is funded by Mitsubishi UFJ Bank and Nomura Holdings, has begun to consider services that can charge Suica cards with crypto assets.
It is possible that Bitcoins and Alt Coins will be able to be converted more fluidly if crypto assets can be charged. However, investors dealing with Bitcoin wonder what kind of influence such utilization of crypto assets will have on the market. In this article we will explore the impact on crypto assets on the market from the digital money promotion concept by DeCurret.
Consider the crypto asset charge function for DeCurret “Suica,” a trading company of crypto assets
As a distributor of crypto assets, DeCurret is considering the ability to charge electronic money “Suica” from crypto assets. On March 27, 2019, the Nikkei Shimbun and other media reports reported it producing a widely talked about topic.
(Reference: Nihon Keizai Shimbun Electronic Edition, 2019/3/27, “Watermelon” is considered for charging in virtual currency IIJ system)
Recently, with the government’s promotion of cashless payments besides e-money, a number of services that can be paid without cash such as QR code payments and smartphone payments have been created. DoCoMo’s “d Payment” and Yahoo’s “PayPay” are attracting attention as emerging forces.
With a plan to introduce crypto asset charges to Suica cards, DeCurret is also planning to combine smartphone payments and crypto asset payments in order to realize this cashless society. Prior to linking with electronic money, services such as exchanges between crypto assets and cash seem to be expanded from April 16, 2019.
In addition, DeCurret is an equity application company of Internet Initiative (IIJ) familiar with the cheap SIM “IIJmio.” Since both companies will be treated as affiliate companies, you can have such expectations that a new business combining smartphone services with cheap SIMs and crypto assets will be born.
Domestic major companies also invest
In addition to IIJ, major companies representing Japan such as Itochu, Nomura Holdings, and Mitsubishi UFJ Bank are investing in DeCurret (a total of 18 companies of jointly ownership).
As of March 25, 2019, as a hypothetical currency exchange company based on the fund settlement method, they obtained formal approval from the FSA. The company will operate from April 16, 2019, as a cryptocurrency exchange company, that is, an exchange for crypto assets.
Initially, the cryptos handled are as follows.
・ Bitcoin (BTC)
・ Bitcoin Cash (BCH)
・ Litecoin (LTC)
・ Ripple (XRP)
・ Ethereum (ETH)
※ Plans to handle from June ~ July of 2019
Exchanges of crypto assets are already famous such as bitFlyer and Zaif, but they are only small and medium-sized specialized companies. It can be said that the entry into the exchange by DeCurret is the result of Japanese major companies such as Itochu, Nomura HD, and Mitsubishi indirectly rushing into the crypto asset market.
It is not necessarily safe because it is a major company, but with the expansion of the scope required for social compliance, it is expected that the security systems will necessarily be better than small and medium exchanges.
“Crypto assets x Electronic money” | What is your plan or concept?
The organization of DeCurret’s entry into the crypto asset market begins with opening an exchange and getting the company’s brand familiar with investors and users. And in anticipation of timing, they will start challenging new fields such as with their Suica charges mentioned at the beginning of this article.
However, they have announced that charges from crypto assets to electronic money has not yet progressed into a concrete plan.
(Reference: https://jp.cointelegraph.com/news/newly-registered-japanese-crypto-exchange-decurret-explains-their-plan> COINTELEGRAPH, 2019/3/27, [with additional notes] Digital Currency New Era DeCurret President Suica and other talks about the aim of the cryptocurrency charges with images also available)
On the other hand, it is true that while they are currently working on the exchange of crypto assets, they are also planning to work with the government on cashless transactions with the entire digital currency taken into consideration. In addition to cryptocurrencies, they plan to act as a “real-digital bridge” that combines stable coin issuance, electronic money, digital points, and so forth.
These efforts can not only predict the rebirth of the new world of progress of a cashless society, but it will also have a positive impact on the market for crypto assets.
For example, with the establishment of a large-capitalized exchange, it is expected that investors looking for transaction security will shift from old exchanges and demand for BTC and XRP handled by DeCurret will increase. In addition to the value of each currency, rising demand can also be expected to increase the market capitalization of the entire market.
“Encryption asset charges” is also expected to legalize digital assets
From here, it is nothing more than a personal forecast, but one of DeCurret’s movements can also be expected to advance the legal development of crypto assets in the future.
DeCurret is a company founded around a total of 18 major capital companies. Although emerging, the capital is already large, at 5.23 billion Yen and it will be strongly influential in the crypto asset industry going forward (the capital of bitFlyer, the largest exchange in Japan, is 4.1 billion Yen).
Below is a partial list of the shareholders composition of DeCurret. If you look only at this, you can see that there are many companies that have a great influence on the Japanese economy.
・ Mitsubishi UFJ Bank
・ Sumitomo Mitsui Banking Corporation
・ Mitsui Real Estate
・ Daiichi Life Insurance
・ SOMPO Holdings
・ Nomura Holdings
・ East Japan passenger railway, etc.
As these large companies play a central role in promoting digitalization of payments, the legal development of crypto assets that accompany them should be reviewed. The position of the crypto asset, the payment method, and the details of the charges will not be available to the user without a clear definition. As a result, it will be a negative factor for DeCurret as well, and it can be expected that there will be an increase in the prompt action from government on legal development.
In Japan ten years later and twenty years later, the system for cash payments may probably be gone, and it may be natural to pay with digital money. However, if you are an investor in crypto assets or are considering investing, you should be more concerned about the market impact of promoting digital money.
Only 10 years have passed since Bitcoin, a representative of cryptographic assets, was born. The recent initiative of DeCurret is like a journey of developing countries through innovation. In the meantime, there is also a risk that the value of crypto assets may decline, but it must be remembered that it also includes the “bright possibility” of developing into a period of high growth, as in Japan’s past time.