Bitcoin Reserve Idea Sparks Cautious Response From Japan PM: Report

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As an analyst with over two decades of experience in global financial markets, I have witnessed the rise and fall of various investment trends. The recent proposal to establish a national Bitcoin reserve by Japan’s House of Councilors member Satoshi Hamada has piqued my interest, given the potential implications for the cryptocurrency market.

As per a recent article from Japanese cryptocurrency outlet CoinPost, Japan’s Prime Minister, Shigeru Ishiba, has shown a cautious approach towards the idea of creating a national Bitcoin (BTC) reserve.

Ishiba Hesitant On Bitcoin Reserve Plans

Although certain Japanese policy-makers suggest mirroring countries such as the U.S. and delving into crypto reserves, Shigeru Ishiba has voiced concerns, stating that there isn’t enough data available for a well-informed choice.

The concept of a national Bitcoin reserve in Japan has been gaining traction following the suggestion by Satoshi Hamada, a councilor from the Party to Protect the People from NHK, during recent parliamentary debates.

According to Hamada’s perspective, it would be beneficial for Japan to consider expanding its foreign currency holdings to include digital currencies such as Bitcoin, following reports suggesting similar discussions are ongoing in the United States.

It seems reasonable for Japan to look at the U.S. approach and potentially convert a portion of their foreign currency holdings into digital currencies like Bitcoin.

In response, the Japanese Prime Minister stated that currently, his administration does not possess sufficient details regarding the strategies of the U.S. and other nations regarding a strategic Bitcoin reserve. Consequently, establishing a Bitcoin reserve by Japan remains uncertain at this point.

According to reports, Ishiba expressed his lack of comprehension regarding the actions taken by the U.S. in regards to creating a Bitcoin reserve. In essence, he stated that it’s challenging for the government to articulate its stance on this matter.

Regarding transforming a portion of its foreign currency holdings into digital currencies like Bitcoin, Ishiba clarified that these digital currencies are actually distinct from foreign exchange assets.

A Strategic Reserve May Shoot Up Bitcoin’s Price

Previously this month, Jerome Powell, Chair of the Federal Reserve (Fed), emphasized once more that the Federal Reserve is not able to own Bitcoin. On the other hand, speculations indicate that the forthcoming administration led by Republican president-elect Donald Trump could potentially move forward with proposals for creating a Bitcoin depository.

In simpler terms, Senator Cynthia Lummis’ proposed Bitcoin Act of 2024 suggests that the US Treasury and Federal Reserve should buy 200,000 Bitcoins every year for five years. This would accumulate a total of one million Bitcoins by the end. If this plan is implemented, it could influence the cryptocurrency market as the decreased supply might lead to an increase in Bitcoin’s price.

If additional nations worldwide start building their own Bitcoin reserves, it could potentially drive the price of Bitcoin even higher, igniting a sort of global competition among countries to amass as much Bitcoin as possible. Already, we’re witnessing nations trying to incorporate Bitcoin into their national treasuries.

Lately, it’s been shared that Anthony Scaramucci, Founder and Managing Partner of SkyBridge Capital, has expressed that should the U.S. decide to establish a strategic Bitcoin reserve, China would likely follow suit. Currently, the value of Bitcoin stands at approximately $95,503, representing a 3.3% decrease over the past day.

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2024-12-27 01:16