Japanese companies lack blockchain experts, overseas cooperation can make up for this disadvantage

Rage Comment : Since there are not many start-ups in the field of financial technology in Japan, there are relatively few people who are proficient in blockchain technology. It will take some time to cultivate talents in this field. Unlike English-speaking countries, language is also one of the reasons that hinder Japan from adopting blockchain technology. However, Japan can make full use of the advantages of blockchain technology by cooperating with overseas companies such as Ripple. Japan wants to bypass the international SWIFT remittance system and reduce the cost of transfers by establishing an alliance of 15 banks.

Translation: Nicole

Financial firms must deal with a variety of challenges in the race to adopt blockchain technology to save costs. Japanese financial firms are particularly hard hit due to a lack of blockchain technology experts.

Japan - Active Regulation

The Japanese government has been actively regulating companies based on digital currencies, introducing a new law to regulate Bitcoin exchanges after the collapse of Mt Gox. In May 2016, the Japanese government passed a bill recognizing that digital currencies and legal currencies have similar functions. Japan has relaxed its regulatory policies and now allows banks to invest in fintech companies, which can help fintech companies raise funds.

Shortage of blockchain experts

According to Reuters, the shortage of blockchain experts is hampering Japan's ability to adopt blockchain technology. Due to the small number of fintech startups in Japan, the number of blockchain experts with advanced skills is relatively small. This situation is expected to continue as it will take some time to develop these skills.

Language barriers

Unlike English-speaking countries, Japan cannot rely on quickly introducing foreign talent to make up for this disadvantage. Japan is not an easy country to immigrate to, unlike the United States or Canada. The government's point-based system only allows highly skilled and well-educated people to work in Japan. However, for people who do not know Japanese, the language barrier is also one of the reasons that prevent them from working in Japan.

Collaboration with foreign companies

Although there is a shortage of blockchain experts in Japan, this will not stop Japanese banks from working with foreign partners such as Ripple to take full advantage of blockchain technology. A consortium of 15 banks, including Yokohama Bank and SBI Sumishin Net Bank of Japan, aims to jointly study the application of blockchain in the field of fund transfer. By using the settlement system developed by Ripple, they plan to reduce the cost of transfers to 1/10 of the current level. The use of blockchain technology in Japan will be gradually developed, even through cooperation.