Japan’s Metaplanet adopts bitcoin as reserve asset amid yen slump
“The move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen,” the company said Monday in a release .
Japan has been experiencing economic difficulties, currently holding the highest government debt-to-GDP ratio among developed countries at 254.6%, according to the International Monetary Fund . This has contributed to the Japanese yen plunging to its lowest level in 34 years last month despite the government’s decision in March to raise interest rates, Reuters reported .
The company said that bitcoin provides a “non-sovereign store of value” that has appreciated against fiat currencies.
“Bitcoin’s monetary policy is rigidly set in stone through 2140, setting it apart from both monetary metals and competing crypto projects operated at the whims of centralized developer teams,” Metaplanet wrote. “There will only ever be 21,000,000 bitcoin.”
Metaplanet added in the release that it aims to utilize the “entire range” of capital market instruments to grow its bitcoin reserves. The company owned 117.7 BTC ($7.2 million) as of May 10, according to data from Bitcointreasuries.net.
