The ¥58 billion digital token heist at Tokyo-based exchange Coincheck last month reminded many of the infamous Mt. Gox fiasco in 2014 and renewed debate on a critical question: Is the cryptocurrency boom a fad or a prelude to real innovation?
The underlying technology of cryptocurrencies — most notably bitcoin — is often touted as something that could drastically alter the landscape of the financial sector. But Japan-based experts interviewed by The Japan Times say virtual currencies are too volatile and have several technological hurdles to overcome before universal adoption becomes possible.
"It is doubtful that bitcoin or other digital currencies with high volatility will be used as a payment or money transfer method," said Daisuke Yasaku, a researcher at Daiwa Institute of Research.