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According to a recent report by Japanese cryptocurrency publication Coin publishingJapan's Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to establish a national bitcoin (btc) reserve.
Ishiba doubts bitcoin reserve plans
While some policymakers in Japan advocate for the country to follow the lead of nations 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 in Japan gained momentum after Satoshi Hamada, a member of the Japanese House of Councilors of the NHK People's Protection Party, floated the proposal during the recent parliamentary debates.
Hamada argued that Japan should explore diversifying its foreign exchange reserves by including crypto assets like bitcoin, in line with what is supposedly being discussed in the United States. Hamada stated:
I think Japan should follow the United States' example and consider converting some of its foreign exchange reserves into crypto assets like bitcoin.
In response, the Japanese Prime Minister said that his government simply lacks sufficient information about the United States and other countries' plans for a strategic bitcoin reserve. As a result, Japan cannot yet commit to creating a btc reserve.
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Ishiba reportedly said that he does not sufficiently understand the “moves” taken by the United States regarding the establishment of a bitcoin reserve. He concluded by saying that “it is difficult for the government to express its opinions.”
Furthermore, regarding the idea of converting some of his currency reserves into digital assets like btc, Ishiba clarified things by saying that cryptocurrencies do not fall into the currency category.
A strategic reserve can skyrocket the price of bitcoin
Earlier this month, Federal Reserve (Fed) Chairman Jerome Powell reiterated that the Federal Reserve itself cannot hold bitcoin. However, reports suggest that the incoming administration of Republican President-elect Donald Trump may move forward with its plans to establish a bitcoin reserve.
The bitcoin Act of 2024, introduced by pro-cryptocurrency US Senator Cynthia Lummis, advocates for the US Treasury and the Federal Reserve to acquire 200,000 btc annually for five years, ultimately accumulating one million btc. Such a move could have a significant impact on the cryptocurrency market by reducing the circulating supply of bitcoin, which could increase its price.
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The price of bitcoin may rise further if other countries around the world create their own btc reserves, culminating in an unofficial international race between nations to accumulate as much btc as they can. The world is already seeing nations. trying to add btc to your treasury reserves.
Recently, SkyBridge Capital founder and managing partner Anthony Scaramucci fixed that if the United States goes ahead with its plans to create a strategic bitcoin reserve, there is no way China will not create one of its own. At the time of this publication, btc is trading at $95,503, down 3.3% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
