Japan’s Finance Minister Endorses Crypto Assets for Diversified Investment Portfolios

Japan’s Finance Minister Shunichi Kato has publicly advocated for including cryptocurrency assets in investment portfolios, marking a significant policy shift. "While crypto assets carry the risk of high volatility, by establishing a proper investment environment, they can become an option for diversified investment," Kato stated during his keynote at WebX 2025. The government aims to foster a sound trading environment without stifling innovation through excessive regulation.

The endorsement comes as Japan grapples with severe economic pressures. With national debt reaching 234.9% of GDP by March 2025, traditional safe-haven assets offer diminishing returns. The weakened yen further erodes purchasing power, making alternative investments increasingly attractive. "Financial repression" policies have created ideal conditions for crypto adoption as investors seek diversification beyond near-zero-yield bonds and savings accounts.