It appears that Japanese residents are taking advantage of government stimulus payments to increase their crypto holdings, as the bank of japan has recorded increased money supply, without corresponding 'boost' in economic activities.
The bank of Japan announced that there was a 6% increase in money in circulation after the government had disbursed stimulus packages to its resident citizens. The disbursement has increased the liquidity of the average Japanese, as about $936 was paid to individuals, while households received roughly $2800 equivalent in Yen.
Therefore, it comes as a surprise that with these amounts of financial injections into the system, inflation remains within the same range. According to the Japanese news outlet, Nikkei, households and individuals that received the stimulus packages, did not make a corresponding increase in consumption. So the question then would be, how are the Japanese spending their stimulus packages?
Recall that sometime last month; there was a report from coinbase of transaction spikes from us residents, who bought about $1200 worth of crypto the same day the government paid out stimulus packages of $1200 to its citizens. This appears to be the scenario for Japan, although there are no adequate records to determine the amount allocated to cryptos. In March, Japanese investors had increased their crypto holdings by about 8%.
Source: Cointelegraph
