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Bitcoin Reserve Idea Sparks Cautious Response From Japan PM: Report

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This article is also available in Spanish.

According to another a report By Japanese currency publication CoinPostJapanese Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to create a national Bitcoin (BTC) reserve.

Ishiba is hesitant about Bitcoin reserve plans

While some policymakers in Japan are calling for the country to follow the lead of countries like the United States in exploring cryptocurrency reserves, Ishiba expressed his reservations, noting that there is not enough information to make an informed decision.

The idea of ​​creating a national Bitcoin reserve in Japan gained momentum after Satoshi Hamada, a member of the Japanese House of Councilors from the People’s Protection Party of NHK, said, I posed The proposal was made during recent parliamentary debates.

Hamada said Japan should explore diversifying its foreign exchange reserves by including crypto assets such as bitcoin, in line with what is reportedly being discussed in the United States. Hamada said:

I think Japan should follow the US lead and consider converting some of its foreign exchange reserves into crypto assets like Bitcoin.

In response, the Japanese Prime Minister said that his government simply lacks sufficient information about the plans of the United States and other countries to create a strategic reserve of Bitcoin. As a result, Japan cannot commit to creating a Bitcoin reserve yet.

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Ishiba reportedly said that he does not have sufficient understanding of the “moves” taken by the United States regarding the creation of a Bitcoin reserve. He concluded by saying that “it is difficult for the government to express its opinions.”

Furthermore, regarding the idea of ​​converting some of its foreign exchange reserves into digital assets such as Bitcoin, Ishiba cleared the air, saying that cryptocurrencies do not fall under the category of foreign currencies.

A strategic reserve could push up the price of Bitcoin

Earlier this month, Federal Reserve (Fed) Chairman Jerome Powell asserted that the Fed itself cannot hold bitcoin. However, reports indicate that the incoming administration under Republican President-elect Donald Trump may move forward with plans to create a Bitcoin reserve.

The Bitcoin Act of 2024, introduced by pro-crypto US Senator Cynthia Lummis, calls for the US Treasury and the Federal Reserve to acquire 200,000 bitcoins annually over five years, ultimately raising 1 million bitcoins. Such a move could significantly impact the cryptocurrency market by reducing the circulating supply of Bitcoin, which could cause its price to rise.

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The price of Bitcoin could rise if other countries around the world create their own Bitcoin reserves, which would culminate in an unofficial international race between countries for Bitcoin. Accumulate As much BTC as possible. The world already sees nations attempt To add BTC to their treasury reserves.

Recently, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, male If the United States goes ahead with its plans to create a strategic reserve of Bitcoin, China is unlikely to create its own reserve. At press time, Bitcoin is trading at $95,503, down 3.3% over the past 24 hours.

BTC is trading at $95,503 on the daily chart | source: BTCUSDT on TradingView.com

Featured image from Unsplash, chart from Tradingview.com

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