Global push for Bitcoin reserves faces skepticism in Japan: report

Bitcoin has become an important asset in geopolitics, as many countries compete to build national reserves that will reshape their financial sovereignty.

As the global push for Bitcoin grows, skeptics are becoming supporters, and Japan remains reluctant to join the trend.

Japan is cautious about Bitcoin reserves

According to A a report According to local news outlet CoinJP, Japan remains cautious about adopting Bitcoin as part of its national reserves due to concerns about security, liquidity and volatility. In an official response on December 20, the Japanese government clarified that crypto assets such as Bitcoin do not fall within the legal framework for foreign exchange reserves.

As such, the government stated that these reserves are intended to stabilize foreign currency-denominated assets and bond markets, and that Bitcoin’s volatility is not compatible with this system.

Prime Minister Shigeru Ishiba, in response to a question from NHK’s Satoshi Hamada, said Japan currently lacks sufficient information about the strategic plans of other countries, including the United States, regarding Bitcoin reserves. Ishiba noted that discussions in these countries are still in their early stages, which makes it difficult for the government to express a final view on adopting such reserves.

Hamada had previously suggested that Japan should consider following the example of the United States by converting part of its foreign exchange reserves into crypto assets such as Bitcoin. However, the government reiterated its position that the Special Account Operation, charged with managing foreign exchange reserves, gives priority to ensuring safety and liquidity.

Although the Japanese government itself does not directly own bitcoin, the Government Pension Investment Fund (GPIF), which manages more than $1.5 trillion in assets and is one of the world’s largest retirement savings pools, is exploring bitcoin as part of a broader portfolio. . diversification plan,

Bitcoin reserves are gaining momentum

President-elect Donald Trump and key Republican lawmakers support having a Bitcoin reserve in the country. Several states, such as Ohio, have also rallied behind the concept. It is worth noting that the United States already possesses large reserves of Bitcoin, totaling 207,189 Bitcoin, which is equivalent to about $20 billion at today’s price. This stash was obtained primarily through criminal seizures, including from the Silk Road case.

Earlier this month, Russian lawmaker Anton Tkachev proposed creating a strategic reserve of Bitcoin while citing Bitcoin’s potential as a stable alternative to volatile traditional currencies. Tkachev’s appeal to the Russian Finance Minister outlined the benefits of cryptocurrencies, especially for countries facing sanctions.