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Breaking News: Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

Bitcoin Reserve Idea Sparks Cautious Response From Japan PM: Report

Ash Tiwari
Ash Tiwari
4 months ago
3 mins read
bitcoin

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Este artículo también está disponible en español.

According to a recent report by Japanese cryptocurrency publication CoinPost, Japan’s Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to establish a national Bitcoin (BTC) reserve. 

Ishiba Hesitant On Bitcoin Reserve Plans

While some policymakers in Japan are advocating for the country to follow the lead of nations like the United States in exploring cryptocurrency reserves, Ishiba has expressed reservations, citing a lack of sufficient information to make an informed decision.

The idea of a national Bitcoin reserve in Japan gained momentum after Satoshi Hamada, a member of the Japanese House of Councilors from the Party to Protect the People from NHK, floated the proposal during recent parliamentary discussions. 

Hamada argued that Japan should explore diversifying its foreign exchange reserves by including crypto assets like Bitcoin, in line with what is reportedly being discussed in the US. Hamada stated:

I think Japan should follow the example of the United States and consider turning some of its foreign exchange reserves into crypto assets such as Bitcoin.

Responding, the Japanese Prime Minister said that his government simply lacks enough information about the US and other countries’ plans for a strategic Bitcoin reserve. As a result, Japan cannot commit to creating a BTC reserve just yet.

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Ishiba reportedly said that he does not have enough understanding of the “movements” taken by the US with regard to establishing a Bitcoin reserve. He concluded, saying that “it is difficult for the government to express its views.”

Further, with regard to the idea of converting some of its foreign exchange reserves into digital assets such as BTC, Ishiba cleared the air saying cryptocurrencies do not fall under the foreign exchange category.

A Strategic Reserve May Shoot Up Bitcoin’s Price

Earlier this month, Federal Reserve (Fed) Chairman Jerome Powell reiterated that the Fed itself cannot hold Bitcoin. However, reports suggest that the incoming administration under Republican president-elect Donald Trump may push forward with plans to establish a Bitcoin reserve.

The Bitcoin Act of 2024, introduced by pro-crypto American Senator Cynthia Lummis, advocates for the US Treasury and Federal Reserve to acquire 200,000 BTC annually over five years, ultimately amassing one million BTC. Such a move could significantly impact the cryptocurrency market by reducing Bitcoin’s circulating supply, potentially driving up its price.

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Bitcoin price can go even higher if other countries around the world create their own BTC reserves, culminating in an unofficial international race among nations to accumulate as much BTC as they can. The world is already seeing nations attempting to add BTC to their treasury reserves.

Recently, SkyBridge Capital Founder and Managing Partner, Anthony Scaramucci, stated that if the US goes ahead with its plans of creating a strategic Bitcoin reserve, there is no way that China will not create one of its own. At press time, BTC trades at $95,503, down 3.3% in the past 24 hours.

bitcoin
BTC trades at $95,503 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash, chart from Tradingview.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Read more

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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