Japan’s government has recently responded to the proposal made by Senate member Satoshi Hamada regarding the “trend of the United States and other countries promoting Bitcoin as a reserve asset.”
The Japanese government apparently stated that it presently does not know of the related trends in the US and other countries and plans to establish a Bitcoin reserve is still in the discussion stage. The government added that it finds “difficult to express an opinion” on Bitcoin reserve.
Japan has already pointed out that as a legal framework of special account utilization dictates “cryptographic assets do not fall under the category of foreign exchange”.
The government clarified that the current foreign exchange reserves are primarily focused on maintaining assets denominated in foreign currencies and ensuring stability within the foreign currency bond market.
Through its response, the Japanese government highlighted that the primary objective of using special accounts is to protect the security and liquidity of foreign exchange reserves. As a result, the Japanese government views the significant price volatility of cryptocurrencies, such as Bitcoin, as incompatible with the existing system.
Furthermore, the government emphasized that amidst ongoing international and domestic debates about integrating cryptos into national reserve strategies, the Japanese government remains cautious about adopting such assets.
As reported by Cryptonewsz, several countries are contemplating creating a Bitcoin reserve due to the geopolitical repercussions in the form of inflation and debt. El Salvador was the first country in the world to take this step.