
Japan is currently postponing plans for a national Bitcoin reserve due to lack of information and concerns over volatility.
Prime Minister Shigeru Ishiba clarified the government’s stance on the matter in response to an inquiry by Satoshi Hamada, a House of Councilors member of the Party to Protect the People, from NHK.
Hamada was asking for the government’s opinion on whether the country should follow in the footsteps of countries like the United States in adopting Bitcoin as an asset for its foreign exchange reserves.
In response, the government said that it does not have complete information about the steps being taken by America and other countries.
Notably, discussions around the world regarding the adoption of Bitcoin as a reserve asset are in the early stages, making it difficult for Japan to offer an official stance at this time.
Ishiba also clarified that Japan does not classify cryptocurrencies as foreign exchange assets, and its foreign exchange reserves are primarily intended to stabilize foreign currency-denominated assets and the foreign bond market.
The reserves are managed under a special account framework, which prioritizes security and liquidity and, as a result, is preventing the government from adding risky assets.
Cryptocurrencies, including Bitcoin, are viewed as illiquid assets due to their high volatility and unpredictable price fluctuations.
While Japan has chosen to tread lightly on these issues, the US Federal Reserve has come forward to make it clear can’t keep bitcoins,
However, incoming President Donald Trump and several Republican lawmakers have pushed for the establishment of a Bitcoin-backed reserve.
Pro-Crypto Senator Cynthia Loomis Pur: A bill introduced earlier this year, called the Bitcoin Act of 2024, proposed that the US Treasury acquire 1 million BTC over five years and establish a national Bitcoin reserve.
Proponents claim that Bitcoin could act as a hedge against inflation, reduce the national debt and strengthen America’s position as a global financial leader.
Cryptocurrencies remain in focus
Crypto remains a major area of focus in Japan despite the government’s current stance, and regulators have continued to push for economy-boosting measures as the country has seen an increase in crypto adoption.
Last month, the government agreed to consider tax reforms on crypto assets, including a proposal to reduce the tax rate on cryptocurrency gains to 20% from the current 55%, aligning them with stock market profits. .
Prime Minister Ishiba has also swore off Using blockchain technology and NFTs as tools to strengthen the island nation’s economy confirms the country’s pro-crypto stance.
Amidst this backdrop, Japanese businesses have shown keen interest in holding Bitcoin on their balance sheets to counter the effects of the country’s economic challenges.
Over the past year, many companies have either adopted or expanded their Bitcoin holdings.
For example, MetaPlanet has steadily increased its Bitcoin reserves through regular investments.
Additionally, companies like Boya Interactive and Remix Point have also made strategic acquisitions of major cryptocurrencies.
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