A prominent Japanese cryptocurrency entrepreneur, Koji Higashi, recently ignited a firestorm of debate with a provocative statement about the Japanese yen and Bitcoin.
The Yen’s “Backing”: A Controversial Claim
Higashi argued that those who criticize Bitcoin for lacking value fail to see the reality of the Japanese yen. He controversially claimed the yen is “backed by hostages”—the Japanese people who continue to work hard, pay taxes, and save in yen despite struggling financially. He highlighted the hardships faced by many Japanese, including inadequate pensions for retirees and low wages for workers battling inflation and a weak currency. He also pointed to a growing discontent with the country’s extensive tax system and bureaucracy.
Higashi’s tweet, translated from Japanese, essentially stated: “The argument that Bitcoin isn’t backed by anything is a popular one, but what about the yen? The yen is backed by Japanese people who, despite struggling, diligently work, pay taxes, and save in yen. That’s enough said.”
Eroding Quality of Life in Japan
Higashi’s comments reflect growing concerns about Japan’s declining quality of life. Many feel the system is failing them, leading to widespread dissatisfaction.
Political Influence on Crypto?
Higashi’s statement also raised questions about potential political manipulation of cryptocurrencies. Some analysts see his comments as opening a Pandora’s Box, suggesting a possible co-opting of popular cryptocurrencies by state and corporate interests. This echoes concerns raised by others, like Bitcoin evangelist Roger Ver, who has written about powerful interests influencing Bitcoin.
The recent Bitcoin price surge has also fueled this debate, with some suggesting it’s driven by market hype and manipulation within the US dollar-dominated system. The debate even extended to stablecoins like Tether, with differing opinions on its redeemability and its heavy reliance on the US dollar.
