- Metaplanet Inc. has decided to accommodate bitcoin in its strategic treasury reserve.
- According to Metaplanet, BTC stands apart from monetary metals and other crypto projects.
As a hedge against Japan’s ongoing economic woes, the Tokyo-listed crypto investment and consultancy business Metaplanet Inc. has decided to accommodate Bitcoin in its strategic treasury reserve.
The company stated:
“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.”
Non-sovereign Store of Value
At 254.6% of GDP, Japan’s government debt is the largest among developed nations, a sign of the country’s ongoing economic woes, according to the International Monetary Fund. According to Reuters, this is one reason why the Japanese yen fell to its 34-year low last month, even though the government decided to boost interest rates in March.
Bitcoin, according to the business, is a “non-sovereign store of value” that has grown in value relative to traditional currencies. According to Metaplanet, Bitcoin stands apart from monetary metals and other crypto projects run by centralized development teams due to its firmly determined monetary policy that remains unchanged until 2140. The total supply of bitcoin will never exceed 21,000,000.
To increase its bitcoin holdings, Metaplanet plans to use the “entire range” of financial market products, as stated in the announcement. Data from Bitcointreasuries.net shows that as of May 10, the corporation possessed 117.7 BTC ($7.2 million).
For the last seven days, the cryptocurrency market has been steadily declining. Compared to last week, the market as a whole is down 3.6%, and trading volume has dropped by a whopping 27%. Although the outlook is bleak, traders hold out optimism, driven in large part by the resiliency of some cryptocurrencies.
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