In response to a formal request from lawmaker Satoshi Hamada, the Japanese government has issued an official statement reiterating its stance on not adopting Bitcoin as part of its foreign reserves. Despite the growing popularity of cryptocurrencies globally, the Asian country maintains a conservative stance towards these digital assets.
The Japanese government’s decision is based on Bitcoin’s high volatility and the lack of a solid legal framework for including cryptocurrencies in its official reserves. The Special Fund for Foreign Exchange, responsible for managing the country’s reserves, is legally restricted to operations with traditional fiat currencies, such as the US dollar and the euro.
Japan’s caution contrasts with other countries that have explored the possibility of using cryptocurrencies as a store of value. However, the Japanese government argues that the priority is to maintain the country’s financial stability and economic security, and that including highly volatile digital assets in its reserves could jeopardize those goals.
The Japanese government’s decision demonstrates the importance of a careful debate on the regulation and use of cryptocurrencies. While Bitcoin has established itself as a store of value in some regions, most countries remain cautious about these digital assets. Japan, in this sense, serves as an example of a country that prioritizes financial stability and economic security in its monetary policy decisions.