Abe's economic stimulus push may boost Bitcoin prices

Summary : Japan plans to implement a 28 trillion yen stimulus package to help its stagnant economy. Prime Minister Shinzo Abe announced the $265 billion plan on Wednesday. The plan aims to boost Japan's economic development, with local and national governments spending...

Japan plans to implement a 28 trillion yen stimulus package to help its currently stagnant economy.

Prime Minister Shinzo Abe announced the $265 billion plan on Wednesday.

The plan, which aims to boost Japan's economy, will include a major increase in government spending at both the local and national levels, as well as loan programs. Details of the plan are expected to be announced sometime next week.

According to Hiroshi Miyazaki, senior economist at Sanren UFJ Morgan Stanley Securities, the total amount of the plan is so huge that it is difficult to implement and it will take several years to advance, which will have a huge impact on the economy.

"The Bank of Japan wants to ease policy, including increasing purchases of government bonds, so you could say the Bank of Japan can take on new debt. It's also easy to see that the Bank of Japan and the government are jointly preparing for this plan," Miyazaki said.

Stimulus package could weaken yen, boost Bitcoin price

Large government spending and loan programs will trigger an inflationary effect, causing the yen to depreciate and the price of Bitcoin to increase.

Currently, the Japanese Yen is showing strong volatility and this change in economic policy can affect its price peaks. Combined with the inevitable rise in Bitcoin prices in the near future, this could further boost the value of the cryptocurrency.

Japan's Peculiar Bitcoin History

This year, Japan became the world's second-largest Bitcoin market, surpassing the United States and ranking just behind China in terms of transactions. Earlier this year, the Japanese government recognized Bitcoin as a currency. Satoshi Nakamoto, the mysterious founder of Bitcoin, has a real name that no one knows to this day, and the name Satoshi Nakamoto is just a Japanese pseudonym he or she uses.

In Bitcoin’s dark history, Japan is the birthplace of the infamous Mt. Gox exchange, which went bankrupt after losing 850,000 bitcoins from its customers and its CEO Mark Karpeles was arrested.