Analysts from Japanese financial holdings company Nomura have estimated that the rise in the value of bitcoin could boost Japan’s economic growth.

Analysts Yoshiyuki Suimon and Kazuki Miyamoto said on Friday that the “wealth effect” arising from the massive gains in the price of bitcoin could increase the country’s GDP by 0.3 percent, a Bloomberg report says.

According to the researchers’ prediction, gains from bitcoin trading by Japanese investors could see consumer spending increase in the range of 23.2 billion–96 billion Japanese yen ($206.5 million–$854.4 million).

A report published Friday by Yoshiyuki Suimon’s team noted:

“Moreover, the fact that the rise in bitcoin prices was concentrated in 2017 Q4 could result in the wealth effect materializing in 2018 Q1, and if that is the case, we estimate a potential boost to real GDP growth on an annualized quarter-on-quarter basis of up to about 0.3 percentage points.”

Describing the “wealth effect” as the increase in consumer spending resulting from a rise in asset values, the team further stated, “Although Japanese investors’ unrealized gains are unlikely to feed straight through to their patterns of consumption, it is common knowledge that personal consumption is bolstered as a result of increases in the value of asset holdings.”

According to a CNBC report, the Nomura team also acknowledged a statement from the governor of Bank of Japan, Haruhiko Kuroda, who said in late December that speculation has led to the rise in bitcoin price.

Nomura building image via Shutterstock