The economist warned: Japan in debt crisis may turn to crypto

While the whole world has succumbed to uncertainties about how financial developments in the US will progress in the upcoming period, economist Robin Brooks stated that attention should now also be directed towards Asia.

Brooks, the global economy director of the Brookings Institution, one of the world-renowned economic and foreign policy institutions, stated that attention should be paid to developments in Japan.

"There is an inflation trend in the world"

An economist stated that inflation in the country started to rise from 2022 and reached levels not seen since the 1980s, saying, "There is a trend like this in the world as well. Therefore, it is normal for prices to rise."

"Stable coins may stand out especially"

Brooks mentioned that there is a risk of inflation in Japan getting out of control, and he stated that the Japanese people may also turn to cryptocurrencies and stablecoins, especially stablecoins.

"The extraordinarily high public debt has put Japan in a terrible deadlock. If Japan maintains low interest rates, the yen may experience further depreciation, which could lead to inflation spiraling out of control. This deadlock situation means that the debt crisis is much closer than people think. Such a crisis could direct investors towards alternative financial instruments. Here, cryptocurrencies, and especially stablecoins as a store of value, may come to the forefront."

Published: September 17, 2025 18:07