Amid a risk of fiscal breakdown, Japanese Finance Minister Katsunobu Kato said that cryptocurrencies can be part of a diversified investment portfolio despite their high volatility.
According to Bloomberg, at the digital assets forum WebX2025 in Tokyo, Kato said, “Crypto assets have risks surrounding high volatility, but through building an appropriate investment environment, they could be part of diversified investments.”
Kato also added that the Finance Ministry will focus on creating a crypto-friendly environment. The event also witnessed the presence of industry leaders, such as Binance’s Co-Founder Changpeng ‘CZ’ Zhao, Tron’s Founder Justin Sun, Mike Novogratz of Galaxy, and Arthur Hayes of Maelstrom.
These remarks come at a time of Japan’s debt-to-GDP ratio exceeding 200%, which many financial experts have expressed concerns can lead to imminent financial repression and potential depreciation of the yen.
Japan Buckles Up for Cryptocurrencies
As Japan’s debt mountain grows, the government is shifting to cryptocurrencies to mitigate its financial stagnation. On August 18, Japan’s Financial Services Agency (FSA) approved the launch of the country’s first yen-backed stablecoin.
Furthermore, Eric Trump is reportedly visiting Tokyo for the Metaplanet Shareholder Meeting next month. In this meeting, the shareholders will vote on new capital-raising methods, with the focus on discussing ways to raise more money. Additionally, American Bitcoin, a company backed by Eric Trump and Donald Trump Jr., also announced plans to expand their businesses in Japan and Hong Kong.
Also Read: SBI Group Joins Chainlink for Institutional Crypto Adoption in Asia
