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Japan Rejects “Strategic Bitcoin Reserve” Proposal But Hints Adoption In Future
On December 26, the Japanese government has officially rejected a proposal to adopt Bitcoin as part of its foreign reserve funds. The proposal was initially put forward by Senator Hamada, who suggested using a small portion of Japan’s foreign reserves to buy and hold Bitcoin.
According to a statement made by Prime Minister Ishiba Shigeru, while the government appreciates innovative ideas, it is not ready to adopt Bitcoin as a foreign reserve just yet. This decision comes as no surprise, considering the high volatility in the value of cryptocurrencies like Bitcoin.
The Japanese government highlighted concerns over the unstable nature of digital currencies, stating that their value can fluctuate drastically and unpredictably. As such, they cannot be considered a reliable store of value for foreign reserves.
Despite this rejection, the statement from Prime Minister Ishiba Shigeru did hint at future adoption. He emphasized the importance of innovation and embracing new technologies, indicating that Japan may reconsider its stance on Bitcoin in the future.
Japan has previously demonstrated a supportive stance towards the digital assets sector, having legalized Bitcoin as a payment method and establishing a well-regulated regulatory framework for cryptocurrency under the Financial Services Agency (FSA).
It remains to be seen whether Japan will revisit this proposal or take alternative measures to incorporate cryptocurrencies into its foreign reserves.
Source: bitcoinik.com
