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Title: Japanese Lawmaker Urges Consideration of Bitcoin Reserve Amid US Efforts
In the wake of recent developments in the United States regarding central bank digital currencies (CBDCs), a Japanese lawmaker has called for the country to consider holding a Bitcoin reserve.
The remarks came as part of a broader discussion on the potential role of cryptocurrency in the financial system. The government official emphasized that Japan should not overlook the possibility of using Bitcoin or other cryptocurrencies as a store of value or even as an alternative currency.
While the idea may seem unconventional, it has gained traction amid growing interest in CBDCs and decentralized finance (DeFi). Some experts believe that Bitcoin’s decentralization and limited supply make it an attractive option for central banks seeking to diversify their reserves.
The concept is not entirely new. In 2022, the Reserve Bank of Australia conducted a study on the potential benefits of holding a small amount of Bitcoin in its reserves. The outcome of the experiment, which involved partnering with fintech company Zerion, demonstrated that a decentralized reserve asset could provide liquidity and stability to the financial system.
However, Japan’s consideration of a Bitcoin reserve should be viewed within the broader context of ongoing global efforts to develop CBDCs. Brazil’s central bank recently advanced its own CBDC pilot using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Similarly, the Hong Kong Monetary Authority is exploring the use of digital tokens for trade finance and carbon credits.
In the United States, lawmakers are pushing forward with bills aimed at enhancing the regulatory environment for cryptocurrencies. As a result, some experts believe that the idea of a Bitcoin reserve could gain traction in the context of CBDC developments.
While it remains unclear whether Japan will take concrete steps to consider a Bitcoin reserve, the discussion serves as a testament to the evolving nature of the cryptocurrency market.
Source: cryptoslate.com
