Japanese lawmaker Satoshi Hamada has urged the government to consider incorporating Bitcoin (BTC) into its foreign exchange reserves, highlighting the cryptocurrency’s potential as a strategic asset in light of the increasing global interest in crypto adoption.
In a parliamentary session on December 11, Hamada raised the issue of Japan’s approach to crypto reserves, pointing to similar efforts in countries like the US and Brazil where policymakers have explored the idea of holding Bitcoin as a hedge against economic risks.
He questioned whether Japan should follow suit and establish a system to allocate a portion of its foreign exchange reserves into crypto assets such as Bitcoin. This move, he suggested, could give Japan significant leverage in global markets.
The timing of Hamada’s proposal coincides with Bitcoin’s milestone price surpassing $100,000, underscoring its growing acceptance and value. At the time of writing, Bitcoin was trading at $101,351 according to CryptoSlate data.
Japan is currently facing economic challenges, having recently slipped behind Germany to become the world’s fifth-largest economy. Proponents argue that adopting a Bitcoin reserve could bolster Japan’s financial flexibility and position the country as a leader in the digital asset space.
This initiative mirrors developments in other countries, with the US exploring similar strategies under a crypto-friendly administration and Brazil considering policy proposals related to Bitcoin reserves. Russian lawmakers have also floated the idea of using Bitcoin in government reserves.
Although the Japanese government has yet to respond to Hamada’s proposal, his remarks underscore a growing recognition of cryptocurrencies’ potential to shape national economic strategies. Bitcoin’s ongoing surge past $100,000 further strengthens the case for its inclusion in sovereign financial planning.
In terms of market data, as of December 13, 2024, Bitcoin holds the top rank by market cap, with a price increase of 1.66% over the past 24 hours. Its market capitalization stands at $2.01 trillion, with a trading volume of $58.45 billion.
The total crypto market is valued at $3.64 trillion with a 24-hour volume of $175.86 billion, and Bitcoin dominance currently at 55.19%.
As discussions around Bitcoin reserves gain traction globally, Japan’s potential entry into this arena could mark a significant step towards mainstream acceptance of cryptocurrencies in the realm of national economic policy.