Japan Considers Diversifying Reserves with Bitcoin Amid Nation’s Rise in Userbase

Japanese lawmaker Satoshi Hamada proposed that the government create a national Bitcoin reserve and convert some of its foreign exchange reserves into Bitcoin. The concept is in line with the global trend that many people hold onto Bitcoin as a reserve because the original cryptocurrency has been reaching new heights in the last month.

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Nausheen Thusoo
Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

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.”

Also Read: Coincheck To List On NASDAQ In Historic Move For Japanese Crypto Exchanges

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.

Also Read: Japanese Listed Company Remixpoint Adds 13.24 BTC to Its Corporate Treasury, Now Owns Over 282 BTC

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.

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