Japan government cautions against Bitcoin as National Reserve, citing volatility and security concerns

The government of Japan has clarified its unwillingness to include Bitcoin in its foreign exchange reserves in response to Hamada Satoshi’s question.

According to a report by Coinpost, Prime Minister Ishiba Shigeru issued an official statement on 20th December in response to Senator (Rassho) Hamada Satoshi’s question.

The government admitted it doesn’t have detailed information on how other nations will adopt Bitcoin into national reserves as these discussions are still in their early stages.

Earlier this month, on December 11th, Senator Hamada proposed that Japan consider joining other countries in turning part of its foreign exchange reserves into Bitcoin.

The government, however, submitted its reply, pointing out that crypto-assets do not conform to the current legal definition of foreign exchange. Moreover, Japan’s reserves aim to stabilize foreign currency-denominated assets and bond markets.

Japan remains cautious about keeping Bitcoin in the national reserve

Japan’s top priorities are safety and liquidity, which means its stance on Bitcoin’s price swings does not match that.

At a time when an increasing consensus is gaining steam within and outside of Japan over whether to put crypto assets into national reserves, Ishiba’s response is cautious.

Meanwhile, in the United States, Federal Reserve Chairman Jerome Powell recently said that the Fed cannot hold Bitcoin, but President-elect Trump and some Republican lawmakers want a strategic Bitcoin reserve.