Japan Rejects Bitcoin National Reserves
Japan's government has officially turned down the proposal to include Bitcoin in its national foreign exchange reserves, citing the cryptocurrency's volatility and its incompatibility with existing financial frameworks.
This cautious stance stands in stark contrast to the growing enthusiasm for Bitcoin and other cryptocurrencies in both private sectors and among several global governments.
Government’s Caution on Bitcoin Reserves
On December 26, 2024, Japanese Prime Minister Shigeru Ishiba addressed the proposal from Senator Satoshi Hamada, a member of the House of Councilors, regarding the potential to convert part of Japan’s foreign exchange reserves into cryptocurrencies, including Bitcoin. The Japanese government responded with a statement clarifying that cryptocurrencies do not align with Japan’s financial reserve strategy.
“The current legal framework does not recognize Bitcoin as part of foreign exchange reserves,” the statement read, adding that Bitcoin’s inherent volatility makes it unsuitable for the government’s strategy, which prioritizes security, liquidity, and stability. The government emphasized that its reserves are intended to stabilize foreign currency-denominated assets and bond markets, not to accommodate speculative, high-risk assets like Bitcoin.
Prime Minister Ishiba also noted the lack of detailed information on the global movement toward Bitcoin reserves, especially in countries like the United States, where discussions are still in their infancy. “It would be difficult for the government to commit to such a decision at this stage,” he said.
Private Sector Investment in Bitcoin
While the Japanese government is still quite cautious about the digital currency, the private sector has been more aggressive with Bitcoin. Companies like Metaplanet, often mentioned as a Japanese version of U.S.-based MicroStrategy, have continued to aggressively invest in Bitcoin. Just last week, Metaplanet added 617 BTC to show its bullish outlook for long-term potential.
