Japan’s version of “Mrs. Jones” gets rich by investing
In the early 2000s, long before the birth of Bitcoin, a group of Japanese housewives learned from each other online, mastering a skill that would make them among Bitcoin’s earliest and most successful traders. These women are called "Mrs. Watanabe," a name that symbolizes a typical Japanese housewife who makes money from foreign exchange trading while her husband works, similar to "Mrs. Jones" in the United States.
The Watanabe ladies first made their fortune through foreign exchange trading, especially in the arbitrage trade of Australian dollars and Japanese yen, where they obtained generous returns. This arbitrage trade was relatively low-risk and was particularly beneficial to Japanese citizens at the time. Japanese women use household credit to borrow large amounts of yen and conduct foreign exchange transactions at low interest rates, thereby earning positive returns in foreign currencies. Forex brokers also offer very generous margins, allowing these women to make large trades with small amounts of money.
Source: The New Indian Express Japanese women often trade forex at low interest rates to earn positive returns in foreign currencies.
Mrs. Watanabe loves cryptocurrency so much
For years, foreign exchange trading accounts have become popular among middle-aged Japanese families, with many accounts registered in men's names but actually controlled by women. These women gather online, joining chat rooms, blogging and sharing tips of the trade. Some feminists believe that Japanese women's historical role in managing family finances, including managing their husbands' personal accounts, gives the Watanabe wives considerable influence.
As some women became wealthy in Forex trading, they began investing in other markets and even branched out into cryptocurrency trading after the birth of Bitcoin. Japan’s Mt. Gox exchange was once the world’s largest Bitcoin exchange, while Liquid hosted one of the largest ICOs in history: Telegram’s $1.7 billion $GRAM token. Japan’s Financial Services Agency is the leading regulator for the cryptocurrency industry, taking the lead in investigating the collapse of major exchanges and becoming one of the first governments to establish pre-market approval policies for tokens.
Japan’s Impact on Cryptocurrency
Unlike most countries, cryptocurrency exchanges in Japan must obtain government approval before listing any new coins. After the 2008 financial crisis, Japanese lawmakers passed a series of consumer protection laws that included restrictions on the leverage and types of trading available to retail investors. As of 2022, Mrs. Watanabe still accounts for 28% of global retail FX trading, although the country only accounts for 7% of interbank FX spot trading.
Source: Japan Financial Futures Association Japan’s foreign exchange trading volume and total positions active accounts
The Watanabe wives continue to wield significant influence in the cryptocurrency market, but no one knows exactly how much money they control. However, if they had learned anything about cryptography or Bitcoin principles such as privacy and peer-to-peer transactions, many Japanese housewives might have become one of the richest whales in the cryptocurrency world.
In the world of cryptocurrencies, the Watanabe ladies do not have the same structural advantage as they did in the past when Japan’s Ministry of Finance subsidized yen borrowing rates. However, they have many years of trading experience and are very familiar with the financial markets, which allows them to be successful in the cryptocurrency market.
As Bitcoin and other cryptocurrencies gain popularity, the story of Japanese housewives who became rich by speculating on the currency has become a legend. These women’s trading experience and market insights make them true crypto OGs. Their success not only demonstrates Japan’s important position in the cryptocurrency market, but also proves that firm belief and shrewd trading strategies can still bring huge returns even in unpredictable markets.