Cold Shower for Bitcoin from Japan: Exchange Rate Comparison and Potential Threats on the Agenda! - Coin Bulletin

Japan indicated a cautious approach to including crypto assets like Bitcoin in its foreign exchange reserves, citing legal framework and price volatility.

The Japanese government officially responded to Senator Satoshi Hamada's question about 'efforts to create Bitcoin reserves in countries like the United States' on December 20th.

This response, published on behalf of Prime Minister Shigeru Ishiba, clarified the government's stance on the possibility of holding cryptocurrencies as reserves.

Proposal to Consider Bitcoin Reserves

Senator Satoshi Hamada of the NHK Protection Party used the phrase “I think Japan should consider following countries like the US and directing a portion of its foreign currency reserves to crypto assets like Bitcoin” in a question directed at the government on December 11th.

“Expressing an Opinion is Hard”

In its response, the government stated that it is not currently closely monitoring the actions of countries like the US on this issue, and that the issue of creating a Bitcoin reserve, as raised by Hamada, is still under discussion in other countries.

Therefore, it expressed that it is difficult for the government to express an opinion at the present time.

Emphasis on Legal Framework

In addition, he stated that cryptocurrencies cannot be considered as currency or similar assets within the framework of legal regulations regarding special budget management.

It was announced that the primary purpose of current foreign exchange reserves is to maintain the stability of assets denominated in foreign currency and the foreign exchange bond market.

Attention to the Risk of Cryptocurrencies

The government emphasized that they prioritize security and liquidity in the management of foreign exchange reserves. They pointed out that crypto assets such as Bitcoin are not compatible with the current system due to high price volatility.

Prime Minister Ishiba's statements reaffirmed Japan's cautious stance on including crypto assets in the reserve strategy, while discussions continue at the national and international levels.

In the US, Federal Reserve Chairman Jerome Powell recently made a statement that the Fed cannot hold Bitcoin. However, it is known that Donald Trump and some Republican senators are continuing their efforts to create a Bitcoin reserve strategy.