Global push for bitcoin reserves faces skepticism in Japan: report

Bitcoin is becoming a critical asset in geopolitics, with many countries competing to build up national reserves that could shape their financial sovereignty.

As the global push for Bitcoin grows, skeptics are becoming advocates, and Japan has been hesitant to join the trend.

Japan cautious about Bitcoin reserves

According to a report by local news outlet CoinJP, Japan is wary of adopting Bitcoin as part of its national reserve due to security, liquidity and volatility concerns. In its official response on December 20, the Japanese government clarified that crypto-assets such as Bitcoin do not fall under the legal framework of foreign exchange reserves.

Thus, the government said that these reserves are intended to stabilize foreign currency-denominated assets and bond markets, and the volatility of Bitcoin is incompatible with this system.

Prime Minister Shigeru Ishiba responded to a question from the party's Satoshi Hamada to protect the public from NHK, saying that Japan currently does not have enough 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, making it difficult for the government to express a firm stance on taking such reserves.

Hamada has previously suggested that Japan follow America's example by converting part of its foreign exchange reserves into crypto assets like Bitcoin. However, the government reiterated its position that ensuring the safety and liquidity of the Special Account, which is tasked with managing foreign exchange reserves, is a priority.

Although the Japanese government doesn't own bitcoin itself, the Government Pension Investment Fund (GPIF), which manages more than $1.5 trillion in assets and is one of the largest pension savers in the world, is exploring bitcoin as part of its broader portfolio. diversity plan,

The Bitcoin Reserve is gaining momentum.

President-elect Donald Trump and key Republican lawmakers support bitcoin reserves in the country. Several states like Ohio have also backed behind this concept. Notably, the US already holds significant Bitcoin reserves, totaling 207,189 BTC, which is roughly $20 billion at today's prices. This stock was mainly obtained through criminal seizures, including from the Silk Road case.

Earlier this month, Russian lawmaker Anton Tkachev proposed creating a strategic bitcoin reserve, citing Bitcoin's potential as a stable alternative to volatile traditional currencies. Tkachev's appeal to Russia's finance minister highlighted the benefits of cryptocurrencies, especially for countries facing sanctions.