The Japanese government has warned about the volatility of Bitcoin amid calls for the asset’s installment as a national reserve. The country has also talked about security issues related to technology as calls to adopt the asset continue to gain momentum around the world. The position was contained in a letter from Prime Minister Shigeru Ishiba to House of Councillors member Satoshi Hamada.
Hamada had previously discussed the likelihood of the country making Bitcoin one of the currencies of its foreign reserves. The Prime Minister noted that the country is not concerned about what is going on in the crypto space. He also highlighted that the country is not following the movement of other countries, making it hard for them to comment on it.
Japan rejects the use of crypto as a reserve currency
According to the letter, cryptocurrencies did not make the cut in qualifying as a foreign exchange going by the guidelines of special accounts operations. In addition, the letter also said that foreign exchange reserves are supposed to stabilize foreign construction assets or bonds. The Prime Minister mentioned that the government has special accounts that focus on safety and liquidity.
The Prime Minister also said that in operating the accounts, the government ensures that foreign exchange transactions are executed smoothly. This ensures that the Japanese currency is stable, providing liquidity and safety. He noted that it is achieved using government bonds with high liquidity and repayment certainty. He also added that the government is not thinking about adopting cryptocurrencies shortly.
Countries continue to push for Bitcoin national reserves
There have been countries talking about setting up Bitcoin national reserves, with several theoretical aspects being discussed. Russia has also joined the coalition, with its parliament discussing the likelihood of an adoption. With the talks still ongoing, there are about 13 countries that actively hold Bitcoin. Although the balances of most countries remain relatively unknown, the data points to emerging trends.
Most countries got their tokens from seizures due to illegalities, with this showing the difference between legal demands and opportunities in the industry. El Salvador started the trend in 2021, announcing its bug adoption. Also, President-elect Donald Trump’s resolve to create a Bitcoin reserve has given the talk momentum. Although he was against the asset in his first term, he is now a profound admirer of the asset.
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