Bitcoin is becoming a critical asset in geopolitics, with several countries competing to build national reserves which will potentially reshape their financial sovereignty.
While the global push for Bitcoin grows, skeptics are becoming advocates, Japan remains hesitant to join the trend.
According to a report by local news outlet CoinJP, Japan remains cautious about adopting Bitcoin as part of its national reserves due to concerns over security, liquidity, and volatility. In an official response dated December 20, the Japanese government clarified that crypto assets like Bitcoin do not fall under the legal framework of foreign exchange reserves.
As such, the government stated that these reserves are intended to stabilize foreign currency-denominated assets and bond markets, and the volatility of Bitcoin is inconsistent with this system.
Prime Minister Shigeru Ishiba, responding to a question from Satoshi Hamada of the Party to Protect the People from NHK, said that Japan currently lacks sufficient information about the strategic plans of other nations, including the United States, regarding Bitcoin reserves. Ishiba noted that discussions in these countries are still in their early stages, which essentially makes it difficult for the government to express a definitive view on adopting such reserves.
Hamada had previously suggested that Japan should consider following the example of the US by converting part of its foreign exchange reserves into crypto assets like Bitcoin. However, the government reiterated its stance that the special account operation, which is tasked with governing foreign exchange reserves, prioritizes ensuring safety and liquidity.
Although the Japanese government itself does not directly hold Bitcoin, its Government Pension Investment Fund (GPIF), which manages over $1.5 trillion in assets and is one of the largest pool of retirement savings in the world, is exploring Bitcoin as part of a broader portfolio diversification plan,
President-elect Donald Trump and key Republican lawmakers are advocating a Bitcoin reserve in the country. Several states, such as Ohio, have also rallied behind this concept. Notably, the US already holds significant Bitcoin reserves, totaling 207,189 BTC, which is roughly worth around $20 billion in today’s price. This stash has been primarily acquired through criminal seizures, including from the Silk Road case.
Earlier this month, Russian lawmaker Anton Tkachev proposed creating a strategic Bitcoin reserve while citing Bitcoin’s potential as a stable alternative to volatile traditional currencies. Tkachev’s appeal to the Russian Finance Minister outlined the benefits of cryptocurrencies, especially for countries facing sanctions.
The post Global Push for Bitcoin Reserves Faces Skepticism in Japan: Report appeared first on CryptoPotato.
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