Wednesday, June 29, 2022

Interest-Earning Bitcoin Accounts Introduced as Japan-Fueled Growth Continues

Interest-Earning Bitcoin Accounts Introduced as Japan-Fueled Growth Continues

Japanese wallet and digital currency exchange Coincheck has announced it will be introducing accounts that allow people to earn interest on their bitcoin funds.

Also read: Canaan Gets $43 Million to Compete Against Big Bitcoin Mining Names

Earning Interest with Bitcoin in Japan

According to a Nikkei report, the Tokyo-based exchange will soon be allowing their customers to make money just by holding their bitcoin with them. This will mark the first time Japan has had interest-paying fixed deposit accounts for the digital currency.

Coincheck will be offering four plans to their customers, giving them a chance to earn a certain rate that varies depending on how long they hold the bitcoin in their accounts.

Users will be able to deposit their bitcoin for 14 days at a 1% annual interest rate, 30 days for 2%, 90 days for 3%, or a full year for 5%. Thus, an account holder depositing 10 bitcoin ($15,956 USD) for 90 days would earn roughly 0.07 bitcoin.

Bitcoin is becoming ever more popular in Japan, with much of its trading volume now coming from the country. Additionally, many who hold bitcoin there do so as a store of value. Hence, this could make the idea of earning interest an attractive offer.

Furthermore, Coincheck’s new deposit service will not be regulated by the country’s government as The Financial Services Agency (FSA) confirmed that it is exempt from banking regulations.

Japan Embraces Bitcoin

In April, bitcoin became officially recognized as a payment method in Japan. Since then it seems that country has been a boon to the bitcoin economy. Many are attributing bitcoin’s recent price surge to the country’s recent activities regarding the crypto.

Following this formal recognition, some major retailers in the country began trialling it a means of payment — such as Bic Camera, one of Japan’s biggest department stores.

The consumer electronics retail chain partnered with the crypto exchange, bitFlyer, to test bitcoin at two of Bic Camera’s flagship stores in Tokyo.

Additionally, another partnership was also formed between Coincheck and the retail branch of the human resources company, Recruit Holdings. About 4,500 stores currently accept bitcoin as a payment method, but according to Coincheck their partnership with Recruit Lifestyle “will add 260,000 more stores that accept bitcoins.”

They claim these additions will all come by the summer of 2017.

Another significant phenomenon coming out of Japan is simply the sheer amount of bitcoin trading occurring in the country. In fact, on 2nd May around 50 percent of trading volume was on the bitcoin/Japanese yen exchange rate.

What do you think of Coincheck’s plan to let customers earn interest on their bitcoin savings? Let’s hear your thoughts.

Images via Bic Camera and Japan Monthly Web Magazine

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