Japan asserts it is not monitoring other countries, adding that it has no plan to adopt a Bitcoin reserve.
The statement responds to Senator Satoshi Hamada’s question about Japan’s stance on Bitcoin reserves.
The country’s current legal framework does not consider cryptocurrencies as foreign exchange.
Adopting Bitcoin as a hedge against inflation has become a global trend. Global powers, including the United States, Russia, and Brazil, are vying to adopt Bitcoin as their governments’ strategic reserves. Meanwhile, Japan revealed its cautious stance towards Bitcoin, asserting, “There are absolutely no plans to consider holding cryptocurrencies.”
On December 11, Senator Satoshi Hamada enquired about Japan’s views on introducing Bitcoin reserves, a concept already explored by other countries, including the US. He added that such a move could add tremendous power to the economy. His statement, submitted to the country’s House of Councillors, read,
“I believe that consideration should be given to this matter, and I would like to hear the government’s views. Should Japan also introduce a system to convert part of its foreign exchange reserves into crypto assets such as Bitcoin?”
In response to the query, the government highlighted the difficulty in expressing a view, adding that Japan is not tracking the policies of the United States or other governments. Prime Minister Ishiba Shigeru clarified that the country’s current legal framework does not consider cryptocurrencies as a foreign exchange.
Further reiterating that Japan is not considering adopting a strategic Bitcoin reserve, Shigeru emphasized the country’s special account operations that prioritize safety and liquidity. The government uses highly liquid government bonds or deposits with foreign central banks to maintain the stability of the Japanese currency’s exchange rate.
Under Donald Trump’s administration, the US is planning to include the pioneer crypto in its reserves. Brazil has introduced a bill concerning the country’s Bitcoin reserve proposal, dubbed the Bitcoin Sovereign Strategic Reserve (RESBit). The bill intends to allocate up to 5% of Brazil’s international reserves to Bitcoin. Russia has also taken a major step in including Bitcoin in the national reserve, submitting a formal appeal to create a Bitcoin reserve.
The increasing interest in Bitcoin reserves among economic powers underscores a significant shift in the global financial landscape. As more countries begin to recognize the potential of Bitcoin, it will be fascinating to observe how many others will follow suit, embracing the pioneering cryptocurrency as a strategic reserve asset.
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