rewrite this title Japanese Crypto Entrepreneur Sparks Controversy: ‘Yen is Backed By Hostages’

A renowned Japanese cryptocurrency businessman responded to his fellow Japanese who see Bitcoin as a currency “not backed by anything of value”.

Crypto entrepreneur Koji Higashi argued that these people who still have a pessimistic view about Bitcoin fail to realize the Japanese yen is being “backed by hostages”.

A Controversial Statement

Higashi argued that the Japanese currency is backed by individuals he claimed as hostage of the economy.

The Diamond Hands Lightning Network executive said that the perspective that Bitcoin is not backed up by something is an argument that most of the Japanese public agrees with. However, Higashi threw a controversial question, saying, “What about the backing of the Japanese yen?”

ビットコインは裏付けない論、とりあえずそれ言っとけば一般の人から同意されてるから言ってるだけでどうでもいいけど、では日本円の裏付けは？

日本円の裏づけは生活が苦しくなりながらも、何も言わずに勤勉に働いて納税して円で貯金してくれる日本人という人質。

そこまで言ってくれれば良し。

— Koji Higashi (@Coin_and_Peace) November 15, 2024

The crypto executive said that these people do not see that the fiat currency is “backed by hostages”, explaining that these are “Japanese people who, even when their lives are struggling, work diligently, pay taxes, and save money in yen without a word.”

Eroding Quality Of Life

Higashi’s sentiment reflects the current state of Japanese society and how the quality of life in the Asian country has been eroding in the past decade.

He said that retirees find their pensions inadequate to support their daily lives while workers are underpaid and try to contend with the weak Japanese currency and inflation, adding that many Japanese have become victims of the massive tax racket in the country as a result of ever-expanding bureaucracy that is “all starting to speak out”.

Political Co-Opt Of Crypto?

Meanwhile, Higashi’s statement also opened a controversial issue about the suspicion of a political co-opt on cryptocurrencies which some analysts see as his response opened a “can of worms” about a debatable topic that there is a “state and corporate co-opt of popular cryptos”.

A known Bitcoin evangelist Roger Ver mentioned in his book that the original BTC has been “co-opted by powerful and vested interests”.

Some market observers suggested that the latest price high of bitcoin is believed to be “pumps from market hype” and the US dollar-led fiat system which Higashi also brought up in the post.

Image: Canva

For example, another Bitcoin evangelist David Shattuck said that the stablecoin Tether is “unredeemable”, adding that MicroStrategy can continue forever because the company can leverage more on it.

Some stablecoin defenders said that Tether is “redeemable”. However, the reality remains that Tether is “overwhelmingly denominated” in US dollars.

Featured image from DALL-E, chart from TradingView