Japan’s Prime Minister Expresses Caution on National Bitcoin Reserve Proposal
According to a recent report by CoinPost, Japan’s Prime Minister Shigeru Ishiba is cautious about the proposal to establish a national Bitcoin (BTC) reserve.
Ishiba Hesitant On Bitcoin Reserve Plans
Some Japanese policymakers advocate for exploring cryptocurrency reserves, following the lead of countries like the United States. However, Ishiba has expressed concerns due to insufficient information for an informed decision.
The proposal for a national Bitcoin reserve gained attention after Satoshi Hamada, a member of the Japanese House of Councilors, suggested diversifying foreign exchange reserves by including crypto assets like Bitcoin. He 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.
Ishiba responded that his government lacks adequate understanding of the US and other nations' strategic Bitcoin reserve plans, making it difficult to commit to creating a BTC reserve. He clarified that cryptocurrencies do not fall under the foreign exchange category.
A Strategic Reserve May Shoot Up Bitcoin’s Price
Federal Reserve Chairman Jerome Powell reiterated that the Fed cannot hold Bitcoin. Reports indicate that the incoming administration under Republican president-elect Donald Trump may pursue establishing a Bitcoin reserve.
The Bitcoin Act of 2024, introduced by Senator Cynthia Lummis, proposes that the US Treasury and Federal Reserve acquire 200,000 BTC annually over five years, totaling one million BTC. This could significantly impact the market by reducing Bitcoin's circulating supply and potentially increasing its price.
Bitcoin prices may rise further if other countries create their own BTC reserves, leading to an unofficial international competition to accumulate BTC. Nations are already attempting to add BTC to their treasury reserves.
SkyBridge Capital Founder Anthony Scaramucci stated that if the US establishes a strategic Bitcoin reserve, it is likely China will follow suit. Currently, BTC trades at $95,503, down 3.3% in the past 24 hours.
