Japan’s government is slightly hesitant about accepting Bitcoin reserves at present. In response to Senator Hamada Satoshi’s request, Prime Minister Shigeru Ishiba expressed hesitancy about retaining Bitcoin in the country’s reserves due to its volatility and legal incompatibility with existing foreign exchange systems.
The statement comes at a time when many nations have been mulling the idea of bringing a strategic Bitcoin reserve into play.
Senator Hamada’s Previous Query About Bitcoin Reserve
As UnoCrypto reported earlier, Senator Hamada Satoshi had asked about “the movement to introduce Bitcoin reserves being promoted in the United States and other countries.“
Additionally, he had recommended that the government convert some of its foreign exchange assets into Bitcoin and create a national Bitcoin reserve.
But, as per local media reports, the administration responded in writing and explained the government’s stance on the potential holding of cryptocurrency assets as reserves.
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In the response, representative Hamada noted that discussions are still in the early stages regarding the introduction of Bitcoin reserves in other countries, and the government responded that it would be “difficult for the government to express a view” on the particular situation. The government also said that it does not currently have a detailed grasp of developments in the United States and other countries.
According to the legal framework governing the operation of special accounts, the report also clarified that “crypto assets do not fall under foreign exchange, etc.” and that the current foreign exchange reserves are meant to stabilize the markets for foreign currency bonds and assets denominated in foreign currencies.
Rejection of Bitcoin Reserve Stays Opposite To Crypto Growth in Japan
The adoption of cryptocurrencies has grown significantly in Japan. Major companies and merchants will accept digital currencies as payment in the country, with data indicating even greater growth. Because of its progressive regulatory climate, this will help Japan become a center for Bitcoin invention and adoption.
A recent survey reveals that 44% of investors of all ages participate in cryptocurrency purchase in Japan in order to be a part of the future, significantly representing Japan’s technologically advanced mindset.
Due to their belief in cryptocurrency’s cutting-edge technology and promise for financial innovation, investors between the ages of 18 and 30 make up the largest group in this category.
Long-term wealth accumulation (40%) and portfolio and risk diversification (38%) are two more of the main reasons Japanese investors have resorted to cryptocurrency. 26% of investors think cryptocurrency could lead to overnight riches, while 28% are involved because they find it entertaining. Just 21% of Japanese cryptocurrency investors believe that cryptocurrency can be used as a hedge against inflation.
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