Japan Maintains Cautious Stance on Creating a Bitcoin Reserve
Japan’s government has expressed a cautious stance on holding Bitcoin as part of its national reserves, citing concerns over volatility and its legal incompatibility with current foreign exchange frameworks.
In an official response on December 20, issued under the name of Prime Minister Shigeru Ishiba, the government addressed a query from Senator Satoshi Hamada of the NHK Protection Party. Hamada had urged the government to consider converting a portion of Japan’s foreign exchange reserves into cryptocurrencies, citing similar discussions in the United States and other countries, a local news outlet reported.
Bitcoin Does Not Qualify as Foreign Exchange
The response stated that Japan has no detailed understanding of such movements abroad and noted that global discussions on incorporating Bitcoin into reserves are still in their early stages. “It would be difficult for the government to express a view on the specific situation,” the statement added.
The government reaffirmed that under current regulations, crypto assets like Bitcoin do not qualify as foreign exchange and that Japan’s reserves are designed to stabilize foreign currency-denominated assets and bond markets. Prioritizing safety and liquidity, officials reiterated that the high volatility of cryptocurrencies is inconsistent with Japan’s reserve strategy.
In the United States, Federal Reserve Chair Jerome Powell recently confirmed that the Fed cannot hold Bitcoin. However, President-elect Donald Trump and some Republican lawmakers are reportedly pushing to establish a strategic Bitcoin reserve.
Source: cryptonews.com
