Japan rejects Bitcoin Reserve plan, citing volatility, insufficient information, and legal issues. MSTR been buying $BTC for 7 weeks in a row now, BTC has been flat for the last 5 weeks. Is the ponzi about to blow?

Sharing is Caring!







See also  I can't wait until lunatics like this are finally put into strait jackets and locked up for the safety of society.

Japan’s government recently turned down a proposal to create a Strategic Bitcoin Reserve, and their reasons are pretty understandable. Firstly, Bitcoin is infamous for its extreme volatility. Imagine your national reserves flipping and flopping like a fish out of water; that’s the kind of rollercoaster Japan wants to avoid. Just a few days ago, on December 26, 2024, Bitcoin’s price took a 4% nosedive due to a simple glitch on TradingView. That kind of unpredictability makes it a risky bet for something as crucial as national reserves.

See also  10,000 layoffs and more to come (Cargill, Tyson, and John Deere). The unemployment level is now higher than when the Fed cut rates (September).

Then there’s the issue of insufficient information. Japan’s Prime Minister, Shigeru Ishiba, mentioned that they don’t have enough insight into how other countries are handling Bitcoin as part of their reserves. Since the global community is still figuring this out, Japan isn’t ready to jump on the bandwagon without knowing all the potential pitfalls.

Legal concerns also play a significant role. Under Japan’s current laws, cryptocurrencies like Bitcoin aren’t recognized as foreign exchange assets. This means they can’t be part of the special accounts meant to stabilize foreign currency and support the bond market. Plus, there are additional headaches, like Bitcoin’s potential use for money laundering and the complicated legal status it has under federal securities law.

Sources:

https://coingape.com/japan-rejects-bitcoin-national-reserve-proposal-amid-global-crypto-trends/

https://www.coinspeaker.com/japan-denies-bitcoin-reserve-plan-government-awaits-us-clarity/

https://www.msn.com/en-us/money/markets/japan-shelves-bitcoin-reserves-plans-citing-lack-of-information/ar-AA1wwukW

https://www.statista.com/statistics/1306877/bitcoin-price-swings/

https://www.fidelitydigitalassets.com/research-and-insights/closer-look-bitcoins-volatility

https://crsreports.congress.gov/product/pdf/R/R43339