US–Japan digital trade deal should include crypto: American think tank
One of the Rand Corporation’s analysts says crypto as part of the bilateral digital trade could lay the groundwork for crypto adoption in global trade.
Two analysts of the think tank Rand corporation Scott W. and Sale Lilly called on Japan and the US to include cryptocurrency in the digital trade deal between the two nations.
In an opinion piece published in the Nikkei Asia on yesterday, Rand Corporation analysts put forward arguments supporting their voice for crypto to be a part of the digital trade agreement.
As per the report, the fact that both countries Us and Japan play host to two of the largest crypto markets in the world makes the exclusion of crypto from the trade deal “somewhat surprising.”
Previous U.S.–Japan Digital Trade deal of 2019 does not include cryptocurrency or blockchain technology. However, the report stated that some parts of the agreement might cover non-financial aspects of the novel technology.
By excluding crypto and other blockchain-based financial applications, the policy think tank analysts said that unnecessary tariffs could burden businesses in the market.
As such, Rand Corporation’s analysts suggested 2 possible solutions: making a separate agreement on cryptocurrencies or redefining the terms of the previous agreement of 2019 to cover cryptocurrency and blockchain technology.
The role of crypto, digital currencies and blockchain technology in global trade is becoming a main point for industry stakeholders. In March, 2021 investment bank Citigroup of the U.S. stated that Bitcoin (BTC) was at a “tipping point” in international trade.
The arrival of central bank digital currencies (CBDC), especially regional CBDCs, is also part of the conversation around digital currencies in cross-border trade.