Prime Minister Ishiba emphasized that Japan’s current laws governing special account operations exclude cryptocurrencies from being classified as foreign exchange.
Japan’s Prime Minister Shigeru Ishiba recently expressed hesitation about adopting Bitcoin BTC $94 911 24h volatility: 0.0% Market cap: $1.88 T Vol. 24h: $22.91 B as part of the country’s foreign exchange reserves, according to local media outlet CoinPost. Ishiba cited a lack of clarity about moves in nations like the United States as a key reason for the cautious stance.
“It is difficult for the government to express its views,” Ishiba stated, emphasizing that Japan does not yet possess enough information about the strategic plans of countries pursuing similar initiatives. His remarks followed a question raised by Satoshi Hamada, a Councilor with the Party to Protect the People from NHK, who urged Japan to consider adding Bitcoin to its reserve assets.
Hamada suggested that Japan follow the example of the United States by converting some foreign exchange reserves into cryptocurrency, like Bitcoin. This proposal aligns with ongoing global discussions about the role of cryptocurrencies in national financial systems.
“Japan should follow the example of the United States and consider turning some of its foreign exchange reserves into crypto assets such as Bitcoin,” Hamada argued.
Why Japan Avoids Crypto in Reserves, While Others Embrace Bitcoin
Prime Minister Ishiba emphasized that Japan’s current laws governing special account operations exclude cryptocurrencies from being classified as foreign exchange. Instead, reserves are directed toward stabilizing foreign construction assets and supporting the bond market.
In managing special accounts, the focus remains on safety and liquidity through assets like government bonds or deposits with foreign central banks. Cryptocurrencies, however, lack the necessary liquidity and repayment certainty for such accounts.
“In the operation of special accounts, to smoothly conduct necessary foreign exchange transactions to realize the stability of the Japanese currency’s exchange rate, we operate with maximum consideration for safety and liquidity,” said Ishiba.
Meanwhile, other nations are moving in a different direction. On November 25, Congressman Eros Biondini of Brazil introduced a bill to create RESBit, a sovereign Bitcoin reserve. Similarly, US Senator Cynthia Lummis has proposed a Bitcoin reserve to reduce national debt and enhance the country’s geopolitical influence.
Bitcoin Reserve Debate Heats Up
Critics remain divided on the idea of a Bitcoin reserve. Prominent figures like Miles Jennings have described it as “a transfer of wealth from the U.S. government to holders of BTC,” arguing that it primarily serves profiteers. Others, like Michael Saylor of MicroStrategy, have suggested it could improve fiscal strategy if governments replaced gold reserves with Bitcoin.
While Ripple CEO Brad Garlinghouse predicts strong demand for a yen-backed stablecoin, Japan has yet to take a definitive step. “People will want to hold yen stablecoins, and I think that is only a matter of time,” Garlinghouse remarked in September, reflecting cautious optimism about the country’s future in the crypto space.
Japan’s deliberate pace in this area reflects its focus on regulatory clarity and market stability, which, for now, keeps Bitcoin outside its official reserves.
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