Japan's government has officially responded to Senator Satoshi Hamada's proposal about including Bitcoin in foreign reserves, emphasizing no plans to use cryptocurrencies for such purposes.
Japan's Legal Framework on Cryptocurrencies
Senator Hamada suggested Japan consider Bitcoin for reserves. However, the government stated the discussions are in early stages. According to Japanese law, cryptocurrencies are not classified as foreign exchange or securities, defined instead as 'crypto assets' under the Payment Services Act.
Prioritizing Stability and Caution in Reserve Decisions
Japan's government emphasizes stability in foreign reserves, deeming crypto's volatility as unsuitable. Despite industry suggestions for crypto ETFs, as seen with Nikkei 225, such plans remain under consideration.
Focuses and Perspectives of Japan's Market
While Japan's financial sector shows interest in broader crypto integration, the government opts for a cautious approach, focusing on the stability and safety of the country's financial systems.
Japan opts against including Bitcoin in currency reserves, citing volatility and regulatory classifications. Though the financial sector advocates wider crypto use, the government remains cautious.
