US–Japan digital trade deal should include crypto: American think tank

Sale Lilly and Scott W. Harold of the American policy think tank Rand Corporation have called on the United States and Japan to include crypto in the bilateral digital trade agreement between the two nations.

In an opinion piece published in the Nikkei Asia on Wednesday, Rand Corporation analysts put forward arguments supporting their clamor for crypto to be a part of the digital trade deal.

According to the article, the fact that both nations play host to two of the largest crypto markets in the world makes the exclusion of cryptocurrencies from the trade deal “somewhat surprising.”

The U.S.–Japan Digital Trade Agreement of 2019 does not include crypto or blockchain technology. However, the article 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, the analysts proposed two possible solutions: negotiating a separate agreement on cryptocurrencies or redefining the terms of the 2019 document to cover digital currencies and blockchain technology.

By adopting either measure, the analysts stated that such a move could set a precedent for clear-cut adoption of crypto and blockchain technology in international trade, especially in the digital trading arena. According to U.S. Bureau of Economic Analysis data, America’s digital economy grew to $2.1 trillion in 2019 – almost 10% of the country’s gross domestic product

The role of crypto, digital currencies and blockchain technology in international trade is becoming a focal point for industry stakeholders. Back in March, U.S. investment bank Citigroup stated that Bitcoin (BTC) was at a “tipping point” in international trade.

The advent of central bank digital currencies (CBDC), especially regional CBDCs, is also part of the conversation around digital currencies in cross-border trade.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.