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By Omkar Godbole|Edited by Parikshit Mishra
Aug 25, 2025, 9:07 a.m.
- Japan’s Finance Minister Katsunobu Katō stated that cryptocurrencies can be part of a diversified investment portfolio despite their high volatility.
- The Japanese government aims to foster innovation in the crypto sector without imposing excessive regulations.
- Kato’s remarks come amid concerns over Japan’s high debt-to-GDP ratio and the potential for financial repression and yen depreciation.
Japan’s Finance Minister Katsunobu Kato said on Monday that cryptocurrencies can be part of a diversified portfolio.
“Crypto assets have risks surrounding high volatility, but through building an appropriate investment environment, they could be part of diversified investments,” Kato said while speaking at an event in Tokyo, according to Bloomberg.
STORY CONTINUES BELOW
The minister added that the government has been trying to ensure that innovation isn’t stifled by excessive regulation.
Kato’s comments are particularly notable in the context of Japan’s debt-to-GDP ratio exceeding 200%, which raises concerns about imminent financial repression and potential depreciation of the yen.
Financial repression involves policies aimed at reducing government debt burdens through measures such as inflation, low or negative real interest rates, currency depreciation and capital controls.
These policies tend to erode returns on traditional fixed-income and cash holdings, thereby boosting the appeal of alternative investments, such as cryptocurrencies, which offer real returns and diversification.
Read more: Bitcoin Chalks Out Lower Price High After Powell, Ether Prints Doji at Lifetime Peak
Omkar Godbole is a Co-Managing Editor and analyst on CoinDesk’s Markets team. He has been covering crypto options and futures, as well as macro and cross-asset activity, since 2019, leveraging his prior experience in directional and non-directional derivative strategies at brokerage firms. His extensive background also encompasses the FX markets, having served as a fundamental analyst at currency and commodities desks for Mumbai-based brokerages and FXStreet. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
Omkar holds a Master’s degree in Finance and a Chartered Market Technician (CMT) designation.
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By Omkar Godbole, AI Boost|Edited by Parikshit Mishra
2 hours ago
Bitcoin has retraced to pre-Powell levels, maintaining bearish technical setup.
What to know:
- Bitcoin has retraced to pre-Powell levels, maintaining bearish technical setup.
- Key support for BTC lies at $110,756, with a significant support zone near the 200-day simple moving average at $100,887.
- Ether’s chart shows doji candle and bearish divergence on the RSI.
