A Japanese lawmaker has called on the government to adopt a strategic Bitcoin reserve to be at the fore of global financial innovation.
Japanese lawmaker Satoshi Hamada has called on the government to adopt a strategic Bitcoin reserve, highlighting its potential role in advancing the country’s position at the forefront of global financial innovation. This follows similar efforts by legislators in the United States, Russia, Argentina, and other jurisdictions.
The call for a Bitcoin reserve stems from the crypto asset’s finite nature, which proponents believe could provide consumers with significant economic benefits and enhance the utility of Bitcoin in cross-border payments.
According to a document from the House of Councilors, Hamada's proposal for a government Bitcoin reserve was outlined in a recent move. Emphasizing the importance of the country holding the top crypto as a national asset, Hamada suggested converting foreign reserves into crypto assets such as Bitcoin, highlighting efforts by global jurisdictions in this direction.
The lawmaker pointed to the neutrality of Bitcoin and its decentralized characteristic, which prevents any form of control within a particular country. This enables global trade with Bitcoin to be conducted without the influence of specific countries, which crypto enthusiasts maintain creates a fair financial playing field for participants.
Initial reactions from the crypto community were positive, with holders expressing appreciation for the recent push by governments towards digital asset adoption. This could potentially spur institutional investment, driving up asset prices and fostering market innovation. Despite Hamada's party holding only two seats in parliament, there is optimism that other lawmakers may support his views.
Japan has taken a varied approach to regulating digital assets. Last month, the country proposed a lightweight regulation for crypto intermediaries. As global regulations intensify, crypto enthusiasts believe the country will become more positive towards virtual assets.
Hamada's proposal for a strategic Bitcoin reserve was inspired by recent moves by US lawmakers. Ahead of the US elections, Donald Trump voiced support for the crypto industry, promising favorable regulations and to end the current administration's "war" on the market. Among other proposals, Trump stated that his administration would begin stockpiling the nation's Bitcoin sales, effectively creating a reserve.
In a related effort, US Senator Cynthia Lummis introduced a bill for a strategic Bitcoin reserve. The bill aims to make the country a Bitcoin power nation by having it acquire 1 million BTC over five years and hold for 20 years. This will be used to offset the growing national debt, which continues to adversely impact market macro conditions.
Sen. Lummis' proposal included selling gold reserves to acquire more Bitcoin, sparking an uptrend among bulls. As a result, several jurisdictions are now setting their sights on a strategic BTC reserve to enhance fair competition.
