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RE: Japan Plans To Launch Their Own Digital Currency "J-Coin" By 2020 !
So what happens when speculators come in and boost their crypto currency 30% in a day?
So what happens when speculators come in and boost their crypto currency 30% in a day?
Excellent question. Much like they do with the yen, the BOJ would have to manage the j-coin - in this case by releasing massive amounts of supply to keep the price stable. Of course when people panic and sell the the BOJ would have to support the market with bids. The point is the BOJ would have to actively maintain a peg with the yen.
Couldn't agree more.
I think this kind of cryptocurrencies are not interesting for global community and only will be used for governments and main banks requirements.
That's a risk in any industry, and is all part of free markets, the point is that a genuinely free market is sufficiently resilient to weather speculators. That being said, the idea of national cryptos leaves me sceptical, especially coming from a country with such wide state intervention as Japan.