- Japanese Bitcoin enthusiast Samson Mow advised the government to acquire 167,000 BTC to address the country’s economic issues.
On September 20, the Bitcoin Layer 2 event in Japan attracted key industrial players in the crypto world. The event was organized by renowned VC firm Fulgure Ventures and co-hosted by Crypto Garage and Blockstream.
The exclusive event assembled top-tier talents from Fintech, banks, and government officials. The primary agenda of the must-attend event was to push for crypto adoption at a considerable government level.
Why Should Japan Add BTC to its Gold Reserve?
The event took a turn when the chief executive of JAN3, Samson Mow, proposed the need for the government to purchase 167,000 BTC to solidify Japan’s place as a global leader in crypto adoption. Mow confessed that after assessing the country’s gold holding, it was important for the country to increase its Bitcoin investment.
A recent report shows that Fumio Kishida administration ranks among the leading countries with the largest gold reserve of 846 metric tons, valued at $50 billion at the current price. The Asian nation has maintained a constant gold reserve for the past ten years to address events that might impact economic uncertainty.
From his analysis, Mow noted that Bitcoin functions similarly to gold reserves. He stated that Bitcoin was a powerful tool for diversifying and maintaining the country’s national reserve.
Will Samson Mow’s Bitcoin Proposal Address Economic Issues?
In his proposal, Mow highlighted the distinguishing features of Bitcoin and gold. He noted that compared to gold, the BTC supply is limited. He described BTC as the ‘hardest asset existing.’
Profiled as a vocal Bitcoin evangelist, Mow has been having dialogues with government officials to make the country a global leader in crypto.
In a recent closed-door meeting with the Minister of State of Financial Services, Junichi Kanda Mow presented his proposal suggesting the need to include BTC in the national reserve.
The meeting discussed the suitability of Japan’s crypto market and the adoption of digital assets. The two noted that crypto adoption in the region has steadily increased to millions of active users.
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A recent report shows that over 5 million Japanese regularly use crypto to meet their day-to-day activities.
Despite the impressive increase in crypto usage, the country has embraced stringent rules for digital assets to shield consumers from unlawful activities. Under the new crypto rule, companies are mandated to prioritize consumer protection while facilitating the buying and selling of crypto assets. These tough rules have scared away potential crypto investors from expanding to the region.
Suitability of Japan Crypto Market
Notably, Mow’s suggestion came at a time when the Bank of Japan (BoJ) announced a new interest rate. The BoJ agreed not to hike or lower the country’s interest rate to foster economic development while maintaining inflation at its lowest.
The decision to retain a constant rate emanated from the country’s economic performance in the past months. The financial regulators noted a dramatic increase in real wages that impacted a surge in household incomes and expenditures.
Based on the economic parameters, the BoJ kept the interest rates unchanged, which will be reviewed in the upcoming meeting. Mow anticipates that in the November meeting, the BoJ will lower the interest rate to increase the attractiveness of BTC in the region.
The crypto entrepreneur believes that if the BoJ hikes the interest rate, the national currency will destabilize, making risky assets such as crypto and stock more attractive.
Race to Become Asian Crypto Hub Intensifies
Even though the Asian country has not acquired any Bitcoin, its neighbouring countries, such as Bhutan and El Salvador, have intensified efforts to increase their BTC holdings. The recent announcement shows Bhutan boasts of a thriving Bitcoin mining sector that generates substantial crypto assets.
Bhutan’s BTC holding surpassed $750 million in value, overtaking El Salvador. Even though President Bukele pledged to acquire BTC daily, Asian countries seem to invest heavily in promoting crypto adoption.
If the Japanese government backs Mow’s proposal, the country will join the list of Asian countries seeking to become crypto epicentres.
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