The Japanese federal government is expressing caution about including Bitcoin or other crypto assets in its foreign exchange reserves.
The government recently expressed this position when responding to a query from Satoshi Hamada, a member of Japan’s House of Councilors. In a recent letter, Senator Hamada questioned the Japanese federal government about the United States’ plans to establish a strategic Bitcoin reserve.
The senator called on the government to consider following the lead of the United States and other countries in adopting Bitcoin as part of their foreign exchange reserves.
The Japanese government is cautious about creating national Bitcoin reserves
In a letter obtained by local media outlet CoinPost, the government responded to the request, emphasizing that it does not adequately understand the US’s Bitcoin reserve plans.
In addition, it was noted that cryptocurrencies such as Bitcoin cannot be classified as foreign exchange due to legal frameworks for special accounting operations.
According to the government, current reserves are strategically positioned to stabilize foreign currency denominated assets and foreign currency bond markets.
In addition, the government expressed concerns about the volatility associated with cryptocurrencies, which is inconsistent with the current system’s priority on the security of foreign reserves.
Discussions about the Bitcoin reserve are increasing
Discussions about Bitcoin reserves have gained momentum recently. This comes after US President-elect Donald Trump announced that his administration would create a strategic Bitcoin reserve that could be used to pay off the country’s debt.
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