Japan might be jumping on the bandwagon of Bitcoin reserves as have many across the globe. According to reports on December 14th, Satoshi Hamada, a lawmaker from Japan, suggested that the government establish a national Bitcoin reserve and convert a portion of its foreign exchange reserves into Bitcoin.
The idea stays in tandem with the trend across the globe which has seen many keep Bitcoin as a reserve given that the OG-crypto currency has been hitting new milestones in the past one month.
Additionally, the idea coincides with Japan’s crypto market growth that has seen an increase in userbase owing to the tech savvy nature of the country.
Bitcoin Reserve Proposed by Japanese Lawmaker
A written query about the establishment of a reserve fund for crypto assets was sent to the government by Hamada. He claimed that because Bitcoin is decentralized, it can be used as a strategic asset and that the US and Brazil are following suit.
The proposal comes as one of the many that the nation has seen for the betterment in the crypto sector.
Japan Sees Rise in Crypto Favoring Exams
Japan has seen multiple proposals for the betterment of crypto sector in the past. Just previously, Japanese Democratic Party for the People (DPP) leader Yuichiro Tamaki had pledged to lower cryptocurrency gains taxes to 20% if elected.
There are currently 55% tax rates on cryptocurrencies. On the other hand, Tamaki wrote in a translated X post on October 20 that, “Please vote for the Democratic Party for the People if you prefer that cryptocurrency assets be taxed separately at 20% rather than being treated as miscellaneous income.”
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The action may be viewed as a major step to win over the cryptocurrency sector and continue to work with international players, such as the US presidential campaign of Donald Trump.
Japan Crypto Growth: What To Expect?
Japan has seen a tremendous growth in terms of crypto adoption. With researches suggesting even more growth, major corporations and retailers will be taking digital currencies as payment in the nation. This will give Japan the boost it needs to become a hub for cryptocurrency innovation and adoption due to its progressive regulatory environment.
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Additionally, in 2024, the Japanese cryptocurrency market is expected to generate US$1,376.0 million in revenue. It is anticipated to grow at a 4.51% annual rate (CAGR 2024-2025), reaching a total estimated value of US$1,314.0m by 2025.
In 2024, the average revenue per user in Japan’s cryptocurrency market will be around US$71.3.By 2025, there will likely be 19.43 million users in Japan’s cryptocurrency market. It is anticipated that the user penetration rate will rise from 15.76% in 2024 to 15.93% in 2025.