The Bank of Japan will create a proof of concept (PoC) for the digital yen to assess the feasibility of issuing state cryptocurrency from a technical point of view.
According to the latest report, the Bank of Japan “will check the possibility of issuing state cryptocurrency from a technical point of view, and will work with other central banks and relevant institutions to explore the possibility of issuing a digital yen.” However, the final schedule and the decision to issue the state cryptocurrency has not yet been adopted.
According to the Bank of Japan, there are two main technical barriers to issuing state cryptocurrency: universal access and fault tolerance. The first relates to ensuring the availability of cryptocurrency for a wide range of users. According to Nikkei, as of 2018, only 65% of Japanese owned smartphones.
By “fault tolerance” is meant the availability of the digital yen offline when a power outage occurs. The Bank of Japan emphasized the importance of the availability of cryptocurrency even in an emergency, such as during an earthquake.
The Central Bank of Japan is considering the use of blockchain to create a state cryptocurrency. A centralized system has the advantages of “high throughput and high transaction speed,” but the entire system can fail at the same time due to the existence of a single point of failure.
Cryptocurrency based on Distributed Ledger Technology (DLT) can solve the problem of a single point of failure and demonstrate higher fault tolerance but it requires more time for transactions since the blockchain needs consensus between several validators.
Technical analysis of Bitcoin (BTC):
Over the past weekend, the price of bitcoin fell to the support level of $8,900, then it rose sharply to the resistance level of $9,240. After such an increase, the price of bitcoin fell to the support level of $9,150. Now, the price of bitcoin is $9,200. In the future, we predict an increase. The nearest resistance levels are $9,300, $9,400, $9,500, $9,600, $9,850, $10,000, $10,250, $10,500, $11,1000, $12,230. The nearest support levels are $9,200, $9,000, $8,600, $8,150, $7,900, $7,600, $7,500.
Technical analysis of Ethereum (ETH):
Over the past weekend, the price of ethereum fell to the support level of $220, then it rose sharply to the resistance level of $235. After such an increase, the price of ethereum fell to the support level of $232. Now, it is $233. In the future, we predict an increase. The nearest resistance levels are $235, $238, $240, $250, $257, $260, $270. The nearest support levels are $229, $225, $220, $218, $216, $212.
Technical analysis of Ripple (XRP):
Over the past weekend, the price of ripple fell to the support level of $0.1730, then it rose sharply to the resistance level of $0.1840. Now, the price of ripple is $0.1820. In the future, we predict an increase. The nearest resistance levels are $0.19, $0.1950, $0.2, $0.2020, $0.2060, $0.21, $0.2150, $0.22, $0.23, $0.2350. The nearest support levels are $0.1820, $0.18, $0.1750, $0.17.
