COINOTAG News reports that on December 26th, the Japanese government responded to a proposal from Senate member Satoshi Hamada concerning the growing trend of nations, including the United States, adopting Bitcoin as a reserve asset. The government acknowledged its limited understanding of these international developments and conveyed that discussions regarding Bitcoin’s potential as a reserve asset are still in the early stages. It specifically noted the challenges in forming a definitive stance on this matter.
Additionally, the government clarified that, under existing legal frameworks, cryptographic assets like Bitcoin do not qualify as foreign exchange. As a result, Japan’s foreign exchange reserves primarily focus on holding assets in traditional foreign currencies while ensuring stability within the foreign currency bond market. The response underlined the importance of maintaining security and liquidity in reserves.
Ultimately, the document reiterates Japan’s cautious approach amidst ongoing dialogue about integrating cryptocurrency into national reserve strategies, reflecting concerns over the inherent price volatility associated with these digital assets.
Source: https://en.coinotag.com/breakingnews/japans-cautious-stance-on-bitcoin-as-a-reserve-asset-government-responds-to-proposal/