Cryptocurrency enthusiasts are well aware of how cryptocurrency is taking off in Japan. The trading volume across exchanges is increasing at an accelerated pace. It now appears the Coincheck exchange will introduce interest-paying accounts soon. This marks an important step for Bitcoin adoption in the country, that much is certain.
Interest-Paying Bitcoin Accounts in Japan
It is the first time a Japanese exchange introduces interest-paying Bitcoin accounts. This change allows BTC holders to deposit currency in a fixed deposit account. As they do so, they will earn interest rates ranging from one to five percent. This does mean users cannot withdraw their funds if they want to earn interest, though.
At the same time, it is worth mentioning these Coincheck “contracts” are short in duration. The official source claims depositing Bitcoin is subject to a 14-day period. In exchange for this action, users will earn interest on the account at the rate of 1% per annum. Depositing funds for longer periods of time results in higher interest rates. Those looking to store their funds for a full year will earn 5% annual interest. It is not a substantial amount by any means, but an interesting proposal nonetheless.
This opportunity will only be profitable if enough people own Bitcoin in the first place. According to the Nikkei Asian Review report, several hundreds of thousands of citizens own Bitcoin in Japan. That seems a rather high number, although it is certainly possible. They do not need to own a full Bitcoin to be eligible for these interest-paying accounts. Owning more BTC will result in higher interest earnings, of course.
No Regulatory Compliance Required
What is even more interesting is how these interest-paying accounts are not subject to national banking regulations. Japan recently officially acknowledged Bitcoin and cryptocurrency. However, it is not legal tender in the country as of right now. This means monetary regulations do not apply to this offering right now. It is possible things will change in the coming years, though.
In the end, this is rather positive news for Bitcoin in Japan. Being able to officially earn interest on BTC holdings is quite intriguing. Long-term investors in BTC may look into this offering over the coming months. Cryptocurrency adoption is growing in Japan, which is the most important news.
