A recent report by Galaxy Digital’s research division predicts that the United States government will not purchase any Bitcoin in 2025, but will instead focus on safeguarding its existing supply. According to the report, the US government will create a stockpile using the Bitcoin it already holds, while discussions on a Bitcoin reserve policy continue.
US Government’s Current Bitcoin Holdings
The US government currently holds approximately 183,850 Bitcoin, worth around $17.36 billion, across 36 known addresses. This significant holding has sparked speculation about the government’s future plans for the cryptocurrency.
Potential for Expanded Bitcoin Reserve Policy
Galaxy Research head of research Alex Thorn believes that there will be movement within government departments and agencies to examine an expanded Bitcoin reserve policy. This could potentially lead to a landmark moment for Bitcoin, signaling its recognition as a legitimate global financial instrument.
Global Implications of US Bitcoin Adoption
A stronger US stance on Bitcoin adoption could trigger a race to mine or acquire Bitcoin among nation states, according to Galaxy analyst JW. This could lead to increased competition among countries, particularly those with large sovereign wealth funds or those adversarial to the United States.
International Reaction
Other countries are watching the US government’s moves on Bitcoin closely. Japan’s Prime Minister Shigeru Ishiba has expressed uncertainty about adopting Bitcoin reserves, citing a lack of understanding of the movements of countries like the US. Meanwhile, former Binance CEO Changpeng “CZ” Zhao believes that China will adopt a strategic Bitcoin reserve, and that smaller countries will likely be the first to do so.
Potential for Increased Adoption
The possibility of increased adoption of Bitcoin by nation states and companies has sparked speculation about the future of the cryptocurrency. With the US government’s significant holdings and potential for expanded reserve policy, the stage is set for a significant shift in the global Bitcoin landscape.
Source: Cointelegraph.com
