Bitcoin Reserve Idea Sparks Cautious Response From Japan PM: Report
According to a recent Report Japanese Cryptocurrency Publication Coin postageJapanese Prime Minister Shigeru Ishiba is taking a cautious stance on proposals to establish a national Bitcoin (BTC) reserve.
Shigeru Ishiba Hesitant on Bitcoin Reserve Plan
While some policymakers in Japan have advocated for the country to follow the lead of countries like the United States and explore cryptocurrency reserves, Ishiba has expressed reservations, citing a lack of sufficient information to make an informed decision.
The idea of Japan establishing a national Bitcoin reserve gained momentum after Japanese House of Representatives member Satoshi Hamada (from NHK’s Protection People’s Party). floating Proposals put forward during recent parliamentary discussions.
Hamada believes Japan should explore diversifying its foreign exchange reserves by including crypto-assets such as Bitcoin, in line with what is reportedly being discussed in the United States. Hamada said:
I think Japan should follow the lead of the United States and consider converting some of its foreign exchange reserves into crypto assets such as Bitcoin.
The Japanese Prime Minister responded that the Japanese government simply lacks sufficient information about the strategic Bitcoin reserve plans of the United States and other countries. Therefore, Japan cannot currently commit to building Bitcoin reserves.
Related reading
According to reports, Ishiba said that he did not have enough understanding of the “moves” taken by the United States to build Bitcoin reserves. He concluded, “It is difficult for the government to express its views.”
Furthermore, regarding the idea of converting part of foreign exchange reserves into digital assets such as BTC, Ishiba clarified that cryptocurrencies do not fall under the foreign exchange category.
Strategic Reserves Could Drive Bitcoin Price Higher
Earlier this month, Federal Reserve Chairman Jerome Powell reiterated that the Fed itself cannot hold Bitcoin. However, reports suggest that the incoming administration under Republican President-elect Donald Trump may move forward with plans to establish a Bitcoin reserve.
The Bitcoin Act of 2024, introduced by pro-cryptocurrency U.S. Senator Cynthia Lummis, calls for the U.S. Treasury Department and the Federal Reserve to purchase 200,000 Bitcoins per year over five years, eventually accumulating 1 million Bitcoins. The move could have a significant impact on the cryptocurrency market by reducing the circulating supply of Bitcoin and could push its price higher.
Related reading
If other countries around the world build their own Bitcoin reserves, Bitcoin prices could rise even higher, ultimately leading to an informal international competition between countries accumulation As many Bitcoins as possible. The world has seen countries try Add BTC to their treasury reserves.
Recently, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, point out If the United States proceeds with its plan to build a strategic reserve of Bitcoin, there is no way China will not build its own reserve. As of press time, BTC was trading at $95,503, down 3.3% in the past 24 hours.
Featured images from Unsplash, charts from Tradingview.com
