Why is Japan Starting to Place Importance on Bitcoin Reserves Now, and What New Players Are Emerging in the Global Financial Market?

In the latest episode of Bitcoin Magazine’s interview, Bitwise asset allocation expert Jeff Park discusses why Japan is once again focusing on Bitcoin. Park also describes Tether as operating like a shadow central bank in trade finance. This interview explores whether Bitcoin is a silent hedge tool or a true currency anchor. Below are the key points from the report.

Tether Forms a Shadow Central Bank

Jeff Park points out that the first market Tether announced its entry into was trade finance, a choice that carries unique significance. Traditional trade finance is often dominated by neutral countries such as Switzerland and Singapore. Although Tether is an offshore entity, it has effectively become a shadow central bank due to its dominant position in the USD stablecoin market. Park believes that Tether can provide USD liquidity without state backing, and after entering the trade finance market, it may fundamentally rewrite the financing structure currently dominated by multinational banks.

Japan Seeks New Havens Through Bitcoin Amidst Deflationary Challenges

Japan has long been in a deflationary and negative interest rate environment, leading to significant capital outflow, with SoftBank being a prominent example. In pursuit of growth, SoftBank has heavily invested in high-risk tech ventures globally, representing a reaction to the stagnation of the domestic economy. Jeff Park points out that as one of the major creditor nations to the U.S., Japan is facing bottlenecks in capital allocation and pressure for new avenues. The emergence of Bitcoin at this time is not coincidental but is a sign of capital seeking new havens and means of value storage.

Local Versions of Bitcoin Reserves Emerging Globally After Strategy

Companies like Strategy have begun hoarding Bitcoin on a large scale, leading to a growing number of fund management companies centered around Bitcoin as a core asset. These companies are not just passively holding Bitcoin but are also attempting to integrate it into capital market operations, such as issuing securities backed by Bitcoin and participating in the lending market. Park highlights that these companies may evolve into real Bitcoin banks in the future, providing Bitcoin financial services to businesses and individuals.

Different countries may also see the emergence of “local versions of MicroStrategy.” In markets where direct access to Bitcoin spot trading is not possible, such companies can provide indirect investment tools with compliant structures. From South Africa to South Korea, regions with active capital markets may develop their own versions of Bitcoin asset platforms.

Is Bitcoin a Hedge Tool or a Financial Infrastructure?

When asked whether Bitcoin is a doomsday hedge tool or the foundation of a global financial network, Park offers a comprehensive perspective. He believes that Bitcoin’s true potential lies not only in value storage but also as collateral for capital, payment infrastructure, and even as a foundational asset for credit creation.

He points out that whether Bitcoin can realize long-term value hinges on its ability to shift from being a tool of resistance to building a new order. Bitcoin needs a positive, optimistic, and constructive narrative to be accepted by mainstream markets and governmental institutions. If it remains merely a hedge tool or a political reaction, it will fail to carry the trust of global capital. Only when Bitcoin is integrated into real economic activities and provides tangible functions and hope will it be regarded as a genuine institutional asset.

Jeff Park concludes with a prediction: Bitcoin will decouple from the stock market faster than most people expect, emerging with an independent price trajectory and becoming a value system independent of traditional financial cycles. He believes this change is not just a technological innovation but also a redistribution of global capital power and monetary sovereignty.

Risk Warning

Investing in cryptocurrencies involves high risks, and their prices can be extremely volatile, potentially resulting in the loss of all principal. Please assess the risks carefully.