The USD is in many ways the de facto global currency for business and trade. It is the most popular currency in the forex market, and as such, it is no surprise to find that BTC/USD $3671.52 -0.04% is one of the most commonly used trading pairs.
According to the cryptocurrency market indexing platform Coinhills, the Japanese Yen has dethroned the US Dollar to become the world’s most traded national currency in the Bitcoin to fiat market. Yen has beaten the Dollar by a slim margin of 3.19%. At the time of writing the market share of US Dollar was 44.65%, while the Japanese Yen won the battle with the whopping market share of 47.84%.
As per the data by the crypto market live price tool Coinhills, the runners-up currencies in the Bitcoin to fiat race were Korea’s Won and the Euro. While the Won took the third place at 5.62%, the Euro took the fourth at 1.15%
In 2017, China ruled the roost when it came to the Bitcoin to fiat market. Unfortunately, in September 2017, the nation lost its top position as the largest BTC exchange market when it banned Bitcoin exchanges. From what was, at a point, the market share of 15%, has now become less than 7% for China.
China’s loss of dominance in the BTC to fiat market led to the increase in the share of the other competing markets such as Japan. The growth of Japan’s market, however, was not as expected because of hacks of the exchanges.
Back in November, there came a study by Cryptocompare that showed a 50 percent dominance for USD in the BTC/fiat market. At the time, JPY accounted for only 21 percent. Though it is important to note that Coinhills’ data covers only 24 hours. The research by CryptoCompare was for the whole of November 2018.
As per reports, the hack of the Tokyo-based Coincheck resulted in the stealing of as much as USD 530 million from the crypto exchange. Such hacks and more led to Japan losing its share of the market.
Last week it was reported that Asian markets tend to have a bigger impact on BTC price than the US and Europe, according to cryptocurrency research firm Mosaic. If the trend holds, Japan, in particular, could give the USD a run for its money when it comes to fiat trading pairs. The land of the rising sun is known for its crypto-friendly laws and embracing BTC commerce with major retailers accepting bitcoin both at brick and mortar stores and online.
Subsequently, Japan’s Financial Services Agency realized that to grow the country’s crypto to fiat market, appropriate security measures need to be enforced along with encouraging tax laws, and a clear and concise regulatory framework.
The FSA also made sure to foster the implementation of crypto in everyday transactions by encouraging Blockchain developers to come up with innovative methods to do the same. Consequently, with all the effort by the Financial Services Agency, Yen has now become the most traded national currency in the Bitcoin to fiat market.
One of the possible reason for the decline of U.S Dollar trading would be due to the holiday season where most of the people in the west won’t be trading. The U.S Dollar trading volume are expected to rise up after 1st January 2019.
Cryptocurrency markets have slowed after a short bull run before Christmas. Bitcoin went below U.S $4,000 again. At the time of writing it was trading at $3,671.66. Investors speculate that Bitcoin will rise after the holiday season is over and have a spectacular New Year start.