The Japanese government has decided not to include Bitcoin in national reserves, citing the volatility of cryptocurrencies and their incompatibility with traditional currency systems.
Bitcoin is Not Suitable for Reserves
In response to a question from Member of Parliament Hamada Satoshi, the government highlighted that cryptocurrencies like Bitcoin are not suitable as reserve currencies due to the associated instability risks. Despite criticism from Hamada Satoshi, who believes Japan should strategically include Bitcoin, the government continues to adhere to traditional reserve strategies.
Private Sector Continues to Trust Bitcoin
Despite the government's cautious stance, Japan's private sector continues to invest in Bitcoin. The technology company Metaplanet purchased 617 additional Bitcoins last week, reaffirming its long-term confidence in the cryptocurrency. Metaplanet's investment illustrates a more open and innovative approach by the private sector towards cryptocurrencies.
Contradictory Stance to Global Trends
Japan's decision contrasts with the growing interest in Bitcoin from other countries. For example, Republican politicians in the United States are discussing the inclusion of Bitcoin in national reserves, and Russia is using Bitcoin for international trade to bypass sanctions. This distancing by Japan creates noticeable differences in the global cryptocurrency market.
The differing attitudes between the public and private sectors in Japan raise questions about balance in the cryptocurrency market. The future of this market may undergo significant changes thanks to private investors' interest.
