Speaking at an event in Tokyo, Kato acknowledged the risks of crypto’s sharp price swings but argued that, under appropriate […] The post Japan’s Finance Chief Backs Crypto as Part of Investment Strategies appeared first on Coindoo.Speaking at an event in Tokyo, Kato acknowledged the risks of crypto’s sharp price swings but argued that, under appropriate […] The post Japan’s Finance Chief Backs Crypto as Part of Investment Strategies appeared first on Coindoo.

Japan’s Finance Chief Backs Crypto as Part of Investment Strategies

2025/08/26 22:01

Speaking at an event in Tokyo, Kato acknowledged the risks of crypto’s sharp price swings but argued that, under appropriate conditions, digital assets could complement traditional holdings. He stressed that Japan must avoid overregulation that could stifle innovation, signaling that the government is seeking a balance between oversight and growth.

Rising Debt Puts Spotlight on Alternatives

The comments come as Japan faces mounting financial challenges, with its debt-to-GDP ratio now exceeding 200%. Economists warn that such conditions raise the likelihood of so-called “financial repression” policies, where governments use tools like inflation, low real interest rates, and capital restrictions to ease their debt burden.

Why Crypto Looks Attractive

If such policies take shape, traditional investments such as bonds and cash savings could see their real returns eroded. In that scenario, alternative assets — including cryptocurrencies — may appear more appealing to both institutional and retail investors looking for protection against inflationary pressures and currency depreciation.

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The Bigger Picture

Kato’s remarks highlight how governments are increasingly recognizing digital assets as more than speculative tools. For Japan, which has long been a global leader in crypto regulation, the challenge lies in building an investment framework that allows growth without losing control of financial stability.


The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

The post Japan’s Finance Chief Backs Crypto as Part of Investment Strategies appeared first on Coindoo.

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