Japan Dismisses Idea of Adding Bitcoin to Reserves
The post Japan Dismisses Idea of Adding Bitcoin to Reserves appeared on BitcoinEthereumNews.com.
Japan rejects Bitcoin reserves over safety and volatility concerns. Private companies such as Metaplanet promote Bitcoin adoption despite government caution. Japan has, in effect, ruled out the use of Bitcoin for its national reserves. This, however, is despite the high interest worldwide in using it as a strategic asset. This move comes after a lawmaker, Satoshi Hamada, floated the idea of converting some of the country’s foreign exchange reserves into Bitcoin. Hamada believed that Bitcoin’s decentralized and limited supply nature would be an ideal hedge against inflation. The government’s view was represented in a paper by Prime Minister Ishiba Shigeru as volatility associated with crypto assets and as not fitting within the reserve system of the foreign exchange reserve system at present. The paper reminded the safety and liquidity of the reserve, and then the author concluded that the crypto asset is not under the category of foreign exchange. Cautious Crypto Reserve of Japan While countries like the United States and Brazil are probing Bitcoin as a reserve asset, Japan is cautious about it. The conservative nature of the nation toward cryptocurrencies has also delayed the development of crypto ETFs. Japan is now at the risk of becoming an anomaly in the global crypto scene. Interestingly, Metaplanet, a company that is often referred to in Japan as the nation’s version of MicroStrategy, recently purchased $62 million in Bitcoin. The company has launched other Bitcoin-oriented initiatives to drive its use. Bitcoin has recovered well from recent lows, with prices around $98,000. However, Japan’s decision to exclude Bitcoin from its reserves will face opposition from this country in the emerging global economy. An industry as massive as cryptocurrency as it stands with a market size of trillions still struggles to figure out how to acquire mainstream use or acceptance from the regulator.…
Filed under: News - @ December 27, 2024 7:18 pm