Japan’s Invest-Locally Plan Likely to Spur Demand for Assets Like Bitcoin, Gold

Japanese Finance Minister Satsuki Katayama said the government is steering the $2 trillion Government Pension Investment Fund (GPIF) to substantially increase investment in domestic financial assets, including government bonds. The shift, according to CoinDesk, comes as concern over Japan’s above-200% public debt-to-GDP ratio has pushed bond yields to three-decade highs and pressured the yen, potentially encouraging demand for limited-supply stores of value such as bitcoin and gold. CoinDesk noted a near-term risk that GPIF’s $931 billion in foreign assets, including $232.1 billion in U.S. Treasuries, could be partially redirected, unsettling Wall Street and weighing on risk assets, including crypto.