The Japanese government has officially clarified its stance on the possibility of holding Bitcoin or other cryptocurrencies as part of its national reserves. 

In a written response published on December 20 under the name of Prime Minister Shigeru Ishiba, the government addressed a question posed by Senator Satoshi Hamada of the Party to Protect the People from NHK. The inquiry focused on whether Japan should follow examples set by other countries, including the United States, in adopting Bitcoin reserves.

Official Response from the Government

Prime Minister Ishiba’s response, reported by CoinPost, confirmed that the government does not currently consider Bitcoin or other cryptocurrencies suitable for inclusion in Japan’s foreign exchange reserves. The statement emphasized that the legal framework governing special accounts excludes crypto assets from the definition of foreign exchange.

Additionally, the response highlighted that the existing system for managing foreign exchange reserves prioritizes safety and liquidity. The government underscored that the volatility inherent in cryptocurrencies, including Bitcoin, is fundamentally inconsistent with these priorities.

Regarding developments in other countries, the government noted that discussions about adopting Bitcoin reserves remain in preliminary stages. It admitted to lacking comprehensive knowledge of international trends and refrained from expressing a specific position on foreign practices, as discussions abroad have not yet matured.‍

Background on Senator Hamada’s Proposal

Earlier this month, Senator Hamada urged the government to explore Bitcoin reserves, citing the strategic movements in other nations. "I believe that Japan should follow the example of the United States and other countries and consider converting part of its foreign exchange reserves into cryptocurrencies such as Bitcoin," he said during a parliamentary session.

Despite Hamada’s advocacy, the government reiterated its commitment to the current system, which focuses on stabilizing foreign currency-denominated assets and bond markets.‍

‍Global Perspective on Bitcoin Reserves

The debate over Bitcoin reserves has gained traction globally. In the United States, Federal Reserve Chairman Jerome Powell recently stated that the Federal Reserve cannot hold Bitcoin under its current mandate. However, President-elect Donald Trump and some Republican lawmakers are advocating for a strategic Bitcoin reserve, sparking further discourse on the topic.

Japan’s cautious stance aligns with its broader regulatory approach to cryptocurrencies, which prioritizes investor protection and financial stability. While crypto assets have seen growing acceptance in various sectors, their role in national reserve strategies remains a contentious issue.