Japan’s government has officially rejected the idea of including Bitcoin in its national reserves, citing the cryptocurrency’s volatility and its classification outside traditional foreign exchange. This cautious stance contrasts with the growing enthusiasm from private sectors within the country, such as Metaplanet, which is actively investing in Bitcoin, highlighting a significant divide between government policy and private sector initiatives. Japan’s Cautious Approach To Bitcoin National Reserve On December 26, an update from Coinpost revealed Japan’s stance on the issue of Bitcoin national reserve. The government’s official response to Senator Hamada Satoshi’s inquiry emphasized that crypto assets like BTC do not fit within the framework of foreign exchange, which is pivotal for Japan’s reserve strategy. This response underscores the government’s priority on maintaining the security and liquidity of its foreign exchange reserves, aspects where Bitcoin’s inherent volatility poses a significant challenge. In its written response, Senator Satoshi Hamada stated: “I believe that Japan should follow the example of the United States and other countries and consider converting part of its foreign exchange reserves into cryptocurrencies such as Bitcoin.” However, the government stated it lacks detailed insight into the developments in the U.S. and other countries regarding BTC reserves. It noted that discussions abroad are still nascent, making it “difficult for the government to express a view” on the specifics. The response reaffirmed the focus on the stability of foreign currency markets, suggesting that the inclusion of BTC would not align with Japan’s current financial system goals. In contrast, the United States is witnessing a push towards establishing a strategic Bitcoin reserve under President-elect Trump and supportive Republican lawmakers. This initiative aims to position the U.S. as a leader in cryptocurrency adoption, although Federal Reserve Chairman Jerome Powell has indicated that the Fed cannot hold Bitcoin. This development could potentially influence Bitcoin’s market price, which has seen significant fluctuations due to regulatory news, investor sentiment, and global economic policies. Bitcoin Reigns Supreme Amid Shifting Focus Metaplanet, often dubbed as Japan’s MicroStrategy, has continued making significant investments in Bitcoin , purchasing an additional 617 BTC last week. This bold move not only demonstrates Metaplanet’s bullish outlook on Bitcoin but also highlights the growing enthusiasm within Japan’s private sector for cryptocurrency investments. It also reflects the corporations’ shifting focus despite Japan’s Bitcoin National Reserve plan rejection. Metaplanet’s strategy mirrors that of MicroStrategy in the U.S., which has been accumulating Bitcoin as part of its treasury reserve strategy. By investing in Bitcoin, Metaplanet is positioning itself to benefit from potential long-term appreciation in cryptocurrency value, despite the inherent risks associated with its volatility. This investment underscores the divergence between the cautious approach of the Japanese government and the proactive, speculative nature of private companies in Japan’s crypto landscape. Meanwhile, amid a race among the global leaders, Russia is also making headlines with its recent stance on crypto. For context, in a recent update, the Finance Minister said that Russian firms are already using Bitcoin for foreign trade to counter Western sanctions. This showcases the growing interest of global leaders and corporations in the flagship crypto. The post Japan Rejects Bitcoin National Reserves Proposal Amid Global Crypto Trends appeared first on CoinGape .
