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According to the latter report with the publication of Japanese cryptocurrency CoinPostJapanese Prime Minister Shigeru Ishiba has taken a cautious stance on the proposal to establish a national Bitcoin (BTC) reserve.
Ishiba Doubts Bitcoin Savings Plans
While some policymakers in Japan are urging the country to follow the lead of countries like the United States in testing cryptocurrency vaults, Ishiba expressed skepticism, 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 of the People’s Protection Group on NHK, it floated proposal during recent parliamentary debates.
Hamada argued that Japan should explore diversifying its foreign exchange currencies by including crypto assets such as Bitcoin, in line with what is reportedly being discussed in the US. Hamada says:
I think Japan should follow the example of the United States and consider switching some of its foreign exchange facilities to crypto assets like Bitcoin.
In response, the Japanese Prime Minister said that his government simply does not have enough information about the plans of the US and other countries to find a place to store Bitcoin. As a result, Japan cannot commit to creating a BTC storage facility at this time.
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It is reported that Ishiba said that he does not have enough understanding about the “movement” taken by the US regarding the establishment of a Bitcoin depository. He concluded that “it is difficult for the government to express its views.”
Furthermore, regarding the idea of ​​converting some of the foreign exchanges into digital assets such as BTC, Ishiba cleared the air and said that cryptocurrencies do not fall under the category of foreign exchanges.
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 move forward with plans to establish a Bitcoin repository.
The Bitcoin Act of 2024, introduced by US Senator Cynthia Lummis, calls for the US Treasury and the Federal Reserve to acquire 200,000 BTC annually over five years, eventually accumulating a million BTC. Such a move could have a major impact on the cryptocurrency market by reducing the circulating supply of Bitcoin, which could increase its value.
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The price of Bitcoin could rise further if other countries around the world create their own BTC currencies, leading to an illegal international race between nations to join in as much BTC as possible. The world is seeing nations you try to add BTC to their savings accounts.
Recently, SkyBridge Capital founder and Managing Director, Anthony Scaramucci, said that if the US goes ahead with its plans to create a strategic Bitcoin repository, there is no way that China will not create its own. At press time, BTC is trading at $95,503, down 3.3% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
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