Japanese Government Pension Fund Explores Bitcoin Investment Potential

Liputan6.com, Jakarta – In a move that could have far-reaching implications for cryptocurrency adoption generally, the Japanese Government Pension Investment Fund (GPIF) is exploring the potential of adding Bitcoin to its investment portfolio.

With assets under management totaling USD 1.5 trillion or the equivalent of IDR 23,580 trillion (assuming an exchange rate of IDR 15,650 per US dollar), GPIF is the largest pension fund in the world, making this development a potential breakthrough for the crypto industry.

According to an official announcement on Tuesday, GPIF has begun a comprehensive process of gathering information regarding the feasibility of diversifying its holdings into alternative and illiquid assets, including the digital currency Bitcoin.

This strategic move comes in line with the IMF's efforts to strengthen its portfolio against uncertain economic changes and take advantage of technological advances that are reshaping global finance.

Historically, GPIF has maintained a relatively conservative investment stance, favoring traditional asset classes such as stocks, bonds, real estate and infrastructure.

However, the fund's latest maneuver signals a desire to broaden its horizons and assess the potential benefits and risks associated with incorporating unconventional investments like Bitcoin into its operations.

“In addition to basic knowledge about the assets targeted for information provision, we also seek information about how overseas pension funds incorporate them into their portfolios and actual investment cases,” said GPIF, quoted from Coinmarketcap, Thursday (21/3/2024).

GPIF's exploration of Bitcoin aligns with Japan's broader regulations on leveraging digital assets.

A month ago, Japanese Prime Minister Fumio Kishida's government unveiled measures to allow investment funds to hold cryptocurrencies directly, a move heralded as a significant step towards integrating digital assets into the country's economic fabric.

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