A Japanese lawmaker has asked the government to consider having a national Bitcoin reserve, echoing the trend among Argentina, Russia, Brazil, and the United States policymakers. Such a proposal points toward the strategic potential of Bitcoin as an asset and underscores how Japan’s attitude on cryptocurrencies is evolving.
The Case for a National Bitcoin Reserve
Recently, a Member of Parliament from the Party to Protect the People from NHK, Satoshi Hamada, proposed a written question to the Japanese government. This one supported the idea of establishing a Bitcoin reserve fund. Based on reports by media outlet CoinPost and parliamentary documents, Hamada quoted developments in Brazil and the United States, in which allegedly governmental bodies consider Bitcoin an asset for strategic reserves.
Hamada, in his suggestion, urged the Japanese to convert part of its foreign exchange reserve into Bitcoin. Hamada emphasized that Bitcoin has the decentralization attribute, hence making it not susceptible to a specific country or institution’s influence. According to him, Bitcoin neutrality allows the digital currency to support economic activities without the need to depend on one fiat currency, making it a powerful alternative to traditional financial systems.
He added that the new administration of Donald Trump in the US was planning to create a crypto “czar,” and similar things were happening in Brazil, where the policy-making mindset is now beginning to consider Bitcoin more as a strategic national asset. His report titled an Overview of the World’s Current Affairs:
“Question regarding the status of understanding the movement to introduce a national Bitcoin reserve in the United States and other countries”
Decentralization and Strategic Importance
Hamada’s proposal relies on Bitcoin’s decentralized and neutral characteristics, which he believes could strengthen Japan’s economic resilience. Unlike fiat currencies, the Bitcoin reserve is not influenced by central banks and particular national policies, thus reducing the impact of geopolitical risks. This feature is quite relevant as Japan faces potential shocks to the yen, as experts claim that the Bank of Japan may delay changes in interest rates until March 2025 or beyond.
This move by the lawmaker mirrors the broader Japanese ambition to become a leader in blockchains at the global level, although the country has fairly strict regulations related to the trading of cryptocurrencies. With the increase in the business leaders as well as the policymakers becoming convinced that something needs to change not to lose innovation and talent to another country, Japanese companies have begun adopting Bitcoin reserve as well as other altcoins within their respective financial plans.
A Divided Political Landscape
Hamada belongs to a very small political party with only two parliamentary seats. However, his opinions might be echoed by other legislators. Japan’s political and business communities are now realizing the necessity of modernizing crypto regulation. A number of legislators are also proposing changes to crypto tax laws so that startups can be encouraged and kept in the country.
However, progress has been slow, partly due to the cautious approach taken by Japan’s new Prime Minister to crypto-related reforms. While many regulatory bodies seem open to creating a more friendly environment to crypto, the Prime Minister seems to have placed more importance on financial stability.
In the following weeks, the Japanese government will officially respond to Hamada’s proposal in writing, which should be posted on the government’s official website. Whether the new policy finds takers or opponents matters little. But it’s undoubtedly an important milestone in the search for a role for cryptocurrencies such as Bitcoin reserves in Japan’s economic plan.
This, of course, may well indicate that Japan is preparing itself to embrace the full potential of cryptocurrencies, or it could also signal the strengthening of its approach toward regulatory reforms. The debate itself emphasizes how blockchain technology transforms the course of national financial policies.
