Global push for Bitcoin reserves faces skepticism in Japan: report

Bitcoin is becoming a critical asset in geopolitics, with various countries competing to build national reserves that will potentially change their financial sovereignty.

As the global push for Bitcoin grows, skeptics become advocates, Japan remains hesitant to join the trend.

Japan is cautious about Bitcoin reserves

According to a report by local news channel 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 dated December 20, the Japanese government clarified that crypto assets such as Bitcoin do not fall within the legal framework of foreign exchange reserves.

As such, the government stated that these reserves are intended to stabilize foreign currency-denominated assets and bond markets, and Bitcoin’s volatility is incompatible with such a system.

Prime Minister Shigeru Ishiba, responding to a question from NHK’s Satoshi Hamada of the People’s Protection Party, said that Japan currently does not have enough information on the strategic plans of other nations, including the United States, for what does it do to Bitcoin reserves. Ishiba pointed out that the discussions in these countries are still in their early stages, which essentially makes it difficult for the government to express a definitive view on the adoption of these reserves.

Hamada had previously suggested that Japan should consider following the example of the US by converting some of its foreign exchange reserves into crypto assets such as Bitcoin. However, the government reiterated its position that the special account operation, which is responsible for managing foreign exchange reserves, prioritizes ensuring safety and liquidity.

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

Bitcoin Reserves Gaining Momentum

President-elect Donald Trump and top Republican lawmakers are advocating for a domestic Bitcoin reserve. Several states, such as Ohio, have also rallied behind this concept. In particular, the United States already has significant reserves of Bitcoin, totaling 207,189 BTC, which is roughly worth about $20 billion at today’s price. This stockpile has been acquired primarily through criminal seizures, including the Silk Road case.

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

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