- 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 post Japan Dismisses Idea of Adding Bitcoin to Reserves appeared first on Live Bitcoin News.