Because of the high volatility & uncertain legal nature of Bitcoin, the Japanese government rejected the proposal of Bitcoin adoption for foreign reserve funds.
Japan is known for its supportive stance toward the digital assets sector. In 2017, this country legalised Bitcoin as a payment method and also introduced a well-regulated regulatory framework for this innovative market under the Financial Services Agency (FSA). The FSA body ensures investor protection and fostering innovation. This country is also known as a global hub for Bitcoin & Blockchain startups.
Recently we reported that Senator Hamada, a representative of the Party to Protect the People from NHK, proposed that his country should use a small part of foreign reserves to buy Bitcoin because the Bitcoin & crypto sector is now changing rapidly.
On 26 Dec 2024, A response to this proposal came from the Japanese government. As per a statement by Prime Minister Ishiba Shigeru, the discussion on “Bitcoin investment in the form of foreign reserves” is in its infancy stages, so not much about it can be said in this situation.
-----Cryptonews AD----->>>
Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE
<<<-----Cryptonews AD-----
Also, the government clarified that the price of Bitcoin is not very stable, which is not a good thing for the stability in the value of a country’s foreign reserves. Secondly, Bitcoin is currently not recognized as an asset, so how can the country adopt Bitcoin as a foreign reserve?
The Prime Minister’s statement on this proposal reflects that the government of Japan is open to adopting innovative things, but they are concerned mainly with the high volatility in the value of this innovative asset.
It is worth it to note that the “Bitcoin Strategic Reserve” Act was first proposed in the USA and so far not implemented and also not recognised by the majority of the states. So here we can say that every country’s government may have different opinions on Bitcoin & Cryptocurrencies, but in the end, every country will go for Bitcoin adoption, sooner or later under peer pressure.
Read also: Vitalik adopts a pygmy hippopotamus named Moo Deng, $MooDeng Token pumps sharply
Japan rejects “Strategic Bitcoin Reserve” proposal but hints adoption in future
https://bitcoinik.com/japan-rejects-strategic-bitcoin-reserve-proposal-but-hints-adoption-in-future/feed/
https://bitcoinik.com/japan-rejects-strategic-bitcoin-reserve-proposal-but-hints-adoption-in-future/feed/
