The Federal Reserve’s decision to keep interest rates high has severely damaged the Japanese Yen, making it one of the worst-performing currencies in the world. As a result of the significant pressure on Japan’s fiat currency, more private companies are following Metaplanet’s lead and implementing a sensible Bitcoin strategy that includes holding Bitcoin in reserve.
The Japanese Yen is Under Stress
The Japanese Yen fell to ¥160.8 versus the US dollar earlier today, its lowest level since 1986. The data indicates that even the Brazilian Real, Argentine Peso, and Turkish Lira are outperforming the Yen.
Dear @Bank_of_Japan_e congratulations, your toilet paper of a currency is now the worst performing in the world, with the lira, peso and real all stronger.
And the best part is once you finally contain it, you have a bond market crash to look forward to. pic.twitter.com/UKmKWuDq6c
— zerohedge (@zerohedge) June 27, 2024
Since June 2020, the Japanese Yen has lost 34% of its value compared to the US dollar in just four years. This is highly rare and alarming, particularly for a developed nation’s currency. To support the Yen and keep it above 160, Japanese officials invested $62 billion in the foreign exchange market in April and May of this year. The effect has been transient, but the Yen has fallen below the line.
The Japanese investment company Metaplanet has already started to adjust to overall trends. Like MicroStrategy, Metaplanet recently revealed that it would buy $7 million worth of Bitcoin by selling bonds.
Bitcoin: Japan’s Best Chance
Market analysts have voiced concerns regarding the Bank of Japan’s monetary policy and the Japanese Yen’s printing. They argue that Japan should covertly purchase Bitcoin to guard against this currency collapse due to the excessive creation of fiat money.
Dear @Bank_of_Japan_e congratulations, your toilet paper of a currency is now the worst performing in the world, with the lira, peso and real all stronger.
And the best part is once you finally contain it, you have a bond market crash to look forward to. pic.twitter.com/UKmKWuDq6c
— zerohedge (@zerohedge) June 27, 2024
It will be interesting to see if Japan can implement a long-term Bitcoin strategy by taking cues from El Salvador. If so, this might be a significant development for the fourth-largest economy in the world.
