Global Push for Bitcoin Reserves Faces Skepticism in Japan: Report

Bitcoin is turning into a vital asset in geopolitics, with a number of international locations competing to construct nationwide reserves which can doubtlessly reshape their monetary sovereignty.

Whereas the worldwide push for Bitcoin grows, skeptics have gotten advocates, Japan stays hesitant to hitch the development.

Japan Cautious About Bitcoin Reserves

In keeping with a report by native information outlet CoinJP, Japan stays cautious about adopting Bitcoin as a part of its nationwide reserves because of considerations over safety, liquidity, and volatility. In an official response dated December 20, the Japanese authorities clarified that crypto belongings like Bitcoin don’t fall underneath the authorized framework of international trade reserves.

As such, the federal government acknowledged that these reserves are supposed to stabilize international currency-denominated belongings and bond markets, and the volatility of Bitcoin is inconsistent with this technique.

Prime Minister Shigeru Ishiba, responding to a query from Satoshi Hamada of the Celebration to Shield the Folks from NHK, stated that Japan at the moment lacks adequate details about the strategic plans of different nations, together with the US, relating to Bitcoin reserves. Ishiba famous that discussions in these international locations are nonetheless of their early phases, which basically makes it troublesome for the federal government to precise a definitive view on adopting such reserves.

Hamada had beforehand urged that Japan ought to think about following the instance of the US by changing a part of its international trade reserves into crypto belongings like Bitcoin. Nonetheless, the federal government reiterated its stance that the particular account operation, which is tasked with governing international trade reserves, prioritizes guaranteeing security and liquidity.

Though the Japanese authorities itself doesn’t immediately maintain Bitcoin, its Authorities Pension Funding Fund (GPIF), which manages over $1.5 trillion in belongings and is among the largest pool of retirement financial savings on the earth, is exploring Bitcoin as a part of a broader portfolio diversification plan,

Bitcoin Reserves Gaining Momentum

President-elect Donald Trump and key Republican lawmakers are advocating a Bitcoin reserve within the nation. A number of states, equivalent to Ohio, have additionally rallied behind this idea. Notably, the US already holds important Bitcoin reserves, totaling 207,189 BTC, which is roughly value round $20 billion in as we speak’s worth. This stash has been primarily acquired by prison seizures, together with from the Silk Street case.

Earlier this month, Russian lawmaker Anton Tkachev proposed making a strategic Bitcoin reserve whereas citing Bitcoin’s potential as a secure different to unstable conventional currencies. Tkachev’s attraction to the Russian Finance Minister outlined the advantages of cryptocurrencies, particularly for international locations dealing with sanctions.