According to a recent report by Japanese cryptocurrency publication CoinPost, Japan’s Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to establish a national Bitcoin (BTC) reserve.
Ishiba Hesitant On Bitcoin Reserve Plans
While some policymakers in Japan are advocating for the country to follow the lead of nations like the United States in exploring cryptocurrency reserves, Ishiba has expressed reservations, citing a lack of sufficient information to make an informed decision.
The idea of a national Bitcoin reserve in Japan gained momentum after Satoshi Hamada, a member of the Japanese House of Councilors from the Party to Protect the People from NHK, floated the proposal during recent parliamentary discussions.
Hamada argued that Japan should explore diversifying its foreign exchange reserves by including crypto assets like Bitcoin, in line with what is reportedly being discussed in the US. Hamada stated:
I think Japan should follow the example of the United States and consider turning some of its foreign exchange reserves into crypto assets such as Bitcoin.
Responding, the Japanese Prime Minister said that his government simply lacks enough information about the US and other countries’ plans for a strategic Bitcoin reserve. As a result, Japan cannot commit to creating a BTC reserve just yet.
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Ishiba reportedly said that he does not have enough understanding of the “movements” taken by the US with regard to establishing a Bitcoin reserve. He concluded, saying that “it is difficult for the government to express its views.”
Further, with regard to the idea of converting some of its foreign exchange reserves into digital assets such as BTC, Ishiba cleared the air saying cryptocurrencies do not fall under the foreign exchange category.
A Strategic Reserve May Shoot Up Bitcoin’s Price
Earlier this month, Federal Reserve (Fed) 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 push forward with plans to establish a Bitcoin reserve.
The Bitcoin Act of 2024, introduced by pro-crypto American Senator Cynthia Lummis, advocates for the US Treasury and Federal Reserve to acquire 200,000 BTC annually over five years, ultimately amassing one million BTC. Such a move could significantly impact the cryptocurrency market by reducing Bitcoin’s circulating supply, potentially driving up its price.
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Bitcoin price can go even higher if other countries around the world create their own BTC reserves, culminating in an unofficial international race among nations to accumulate as much BTC as they can. The world is already seeing nations attempting to add BTC to their treasury reserves.
Recently, SkyBridge Capital Founder and Managing Partner, Anthony Scaramucci, stated that if the US goes ahead with its plans of creating a strategic Bitcoin reserve, there is no way that China will not create one of its own. At press time, BTC trades at $95,503, down 3.3% in the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
