CEO of Tokyo-listed Metaplanet Holding Bitcoin: The Bank of Japan is an Institution Born from Inflation Memory

Simon Gerovich, CEO of Tokyo-listed Metaplanet, which holds Bitcoin, stated that the Bank of Japan is an institution born from inflation memory: during the Southwest War in 1877, part of the military expenses was supported by issuing unredeemed paper currency, leading to a sharp rise in prices; Matsukata Masayoshi promoted the organization of paper currency, establishing the Bank of Japan in 1882, and the 1884 banknote convertibility regulations unified the issuance rights, inscribed with the principle of "never wanting to go through this again." He believes that understanding the currency mechanism starts from here.

After the Southwest War, the Meiji government suspended redemption and used inflation to support military expenses, a common narrative in monetary history. Matsukata's deflation subsequently contracted the paper currency and established modern finance and central banking, at the cost of several years of depression. Gerovich also mentioned at an industry conference that Japan's debt is about 240% of GDP, and the cash stock and the 2028 regulatory node provide a macro background for the company treating Bitcoin as a reserve, stating that the company has expanded its Bitcoin per share through financing. This speech did not provide new purchase figures nor announce any changes in Bank of Japan policy. The convertibility regulations targeted the decentralized issuance of national banks, not today's quantitative easing texts.