Japan’s Finance Minister Opens Door for Crypto in Diversified Portfolios

Japan’s Finance Minister, Katsunobu Kato, has said that cryptocurrencies, despite their high volatility, can play a role in diversified investment portfolios. Speaking at an event in Tokyo, Kato emphasized that the government aims to build an environment where innovation can thrive without being suffocated by excessive regulations.

His remarks carry weight at a time when Japan’s debt-to-GDP ratio has surged past 200%, fueling fears of financial repression and potential yen depreciation. Financial repression often involves policies like keeping interest rates artificially low, inflating away debt, or weakening the local currency — all of which erode returns on traditional fixed-income and cash holdings.

Against this backdrop, alternative assets like Bitcoin and Ethereum are gaining appeal, offering real returns and diversification opportunities. Kato’s balanced view reflects Japan’s intention to foster growth in the crypto sector while managing risks, a stance that could further legitimize digital assets in mainstream finance.

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🔥 Hook for virality (Binance Square style):

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