The Japanese government has officially rejected the proposal to include Bitcoin 
$94,356 in national reserves. The volatility of cryptocurrencies and their incompatibility with traditional currency frameworks significantly influenced this decision. Instead of integrating cryptocurrencies into the national economy, the government prefers to adhere to security and liquidity-focused policies.
Government: “Bitcoin is Not Suitable for Reserves”
In response to a question from Member of Parliament Hamada Satoshi, the government highlighted that cryptocurrencies like Bitcoin cannot be evaluated as reserve currencies. According to a news report by Coinpost on December 26, government officials pointed out the risks associated with the inherent volatility of these assets.
Hamada Satoshi criticized the government’s decision, stating, “I believe Japan should strategically include Bitcoin in its reserves, like the United States.” However, the government’s reluctance to accept this suggestion indicates a commitment to traditional reserve strategies.
Private Sector Continues to Trust Bitcoin
Despite the government’s cautious stance, Japan’s private sector continues to invest in Bitcoin. The technology company Metaplanet purchased 617 additional Bitcoins last week, reaffirming its long-term confidence in the cryptocurrency.
Metaplanet’s investment illustrates the private sector’s more open and innovative approach to cryptocurrencies. In contrast, the government prioritizes minimizing volatility in its national reserve strategies, reflecting a clear divide between public and private sectors in Japan’s economic policy.
Contradictory Stance to Global Trends
This decision by Japan contrasts sharply with the growing interest in Bitcoin from other countries. For instance, Republican politicians in the United States are discussing the inclusion of Bitcoin in national reserves, while Russia is using Bitcoin for international trade to bypass sanctions.
Japan’s distant approach to Bitcoin creates a noticeable difference in the global cryptocurrency market. However, the government’s decision aligns with its stability and security-focused policies. The private sector’s investments in this area may signal significant developments in the cryptocurrency market in the future.
The differing attitudes between the public and private sectors in Japan raise questions about how to establish a balance in the cryptocurrency market.
