The Japanese government has clarified its stance on the possibility of holding the leading cryptocurrency as a reserve asset, as reported by Coinspot.
On December 11, Satoshi Hamada, a member of the House of Councillors from the Party to Protect the People from NHK, submitted a query to the cabinet.
“I think Japan should follow the example of the United States and consider converting part of its foreign reserves into crypto assets like Bitcoin,” the parliamentarian stated.
In a response on behalf of Prime Minister Shigeru Ishiba, the government noted that it lacks a clear understanding of the actions of the United States in this regard, as discussions are still ongoing.
According to Japan’s regulatory framework, current reserves are composed of foreign currencies, and crypto assets do not fall into this category, the authorities pointed out.
The response also emphasized that the management of special accounts prioritizes the safety and liquidity of reserves. Officials indicated that Bitcoin’s volatility is incompatible with the existing system.
Earlier in the United States, Federal Reserve Chairman Jerome Powell expressed opposition to President-elect Donald Trump’s initiative to create a national reserve of the leading cryptocurrency.