According to a recent report by Japanese Digital Currency Publishing CoinPostJapanese Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to create a national Bitcoin (BTC) reserve.
Ishiba hesitant about Bitcoin storage plans
While some policymakers in Japan have advocated for the country to follow countries 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 gained momentum in Japan after Satoshi Hamada, a member of Japan's lower house of parliament from the People's Protection Party, told NHK. floated This proposal in the recent negotiations of the parliament
Hamada argued that Japan should consider 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 example of the US and convert some of its foreign exchange reserves into crypto-assets like Bitcoin.
The Japanese prime minister responded by saying that his government simply did not have enough information about the plans of the US and other countries to strategically store bitcoins. As a result, Japan cannot yet commit to creating a bitcoin reserve.
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Ishiba said he did not understand the “movements” made by the United States regarding the creation of a bitcoin reserve. In the end, he said: It is difficult for the government to express its opinion.
Additionally, regarding the idea of converting some of its foreign exchange reserves to digital assets such as Bitcoin, Ishiba cleared the issue, saying that cryptocurrencies do not fall under the category of foreign currencies.
A strategic reserve may drive up the price of Bitcoin
Earlier this month, Federal Reserve (Fed) Chairman Jerome Powell reiterated that the Fed cannot hold Bitcoin. However, reports suggest that the incoming administration under Republican President-elect Donald Trump may push ahead with plans to create a Bitcoin reserve.
The Bitcoin Act of 2024, introduced by pro-crypto U.S. Senator Cynthia Loomis, would support the US Treasury and Federal Reserve to acquire 200,000 bitcoins annually over five years, eventually amassing one million bitcoins. do Such a move could potentially affect the cryptocurrency market by reducing the circulating supply of Bitcoin, potentially driving up its price.
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If other countries around the world build up their own Bitcoin reserves, the price of Bitcoin could rise even higher, leading to an informal international competition between countries. Accumulate As much BTC as they can have. The world now sees the nations effort to add bitcoins to their treasury reserves.
Recently, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, expressed If the US goes ahead with its plans to build a strategic Bitcoin reserve, there is no way China won't build one of its own. At press time, BTC is trading at $95,503, down 3.3% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
