Japan's cautious attitude towards integrating Bitcoin (BTC) into its national reserves is attracting attention, but the Japanese Prime Minister remains neutral and silent.
Japan's cautious attitude towards integrating Bit into its national reserves is attracting attention, especially since the country is known for its progressive approach to managing and regulating cryptocurrencies. While Prime Minister Shigeru Ishiba has been pushing for innovation in the cryptocurrency field, he has been cautious when it comes to the possibility of including Bit in the country's foreign exchange reserves, prioritizing stability and liquidation over other factors.
In a discussion with Senator Satoshi Hamada on December 20, Prime Minister Ishiba affirmed that cryptocurrencies, including Bit, are not considered foreign exchange assets under Japanese law. Japan's foreign exchange assets prioritize stability and liquidation - characteristics that Bit, with its high price volatility, cannot meet.
Prime Minister Ishiba emphasized that this volatility could create risks that could destabilize the reserve system. This approach contrasts with some other countries, such as the United States, which are considering holding Bit as a reserve asset. Supporters of Bit argue that its decentralized nature can help mitigate economic risks and diversify the reserve portfolio.
Japan is currently a leader in managing and promoting innovation in the cryptocurrency field. The government has recognized Bit as a legal payment method under the Payment Services Act (PSA), while also introducing strict licensing and operating requirements for cryptocurrency exchanges, overseen by the Financial Services Agency (FSA). These measures ensure transparency, user protection, and effective fund management.
Furthermore, Japan has also issued regulations related to stablecoins, requiring issuing organizations to obtain licenses and ensure the stability of the tokens. Recently, Ripple CEO Brad Garlinghouse emphasized that Japan is developing a yen-backed stablecoin, indicating the country's potential to become a stablecoin innovation hub due to its clear regulatory framework.
Although Japan's legal framework supports the adoption of cryptocurrencies, the hesitation to integrate Bit into foreign exchange reserves reflects a realistic assessment of the risks and effectiveness of its use. The Japanese government is focusing on stable financial instruments, such as yen-backed stablecoins, to strengthen economic resilience.
