Original author: Liz Napolitano, Decrypt
Original translation by: Felix, PANews
Driven by a historic market surge, some countries are considering establishing national Bitcoin reserves; in recent weeks, Bitcoin, the world's largest cryptocurrency, has reached new highs, with prices first surpassing $100,000 earlier this month.
The elected President of the United States, Donald Trump, and his allies have repeatedly supported legislation to reserve Bitcoin for the Federal Reserve, and this goal may soon be realized.
Brazilian government officials have also proposed legislation to realize this possibility, while politicians in Poland and Russia support the idea of adding digital currency to their national balance sheets.
El Salvador is leading in this regard, designating Bitcoin as legal tender while gradually accumulating Bitcoin as its reserve since 2021.
While it is currently unclear whether other countries will genuinely reserve Bitcoin in the short term, one thing is evident: the interest in holding the token as a reserve asset has reached a fever pitch. Here are the countries considering establishing national Bitcoin reserves.
United States
Several U.S. lawmakers have already pushed for the establishment of a strategic Bitcoin reserve.
Wyoming Senator Cynthia Lummis proposed a bill called the 'Bitcoin Act' last spring, which suggested that the U.S. purchase up to 200,000 Bitcoins annually over five years, or 5% of the total supply of the token.
Bitcoin will be stored in a 'decentralized secure Bitcoin vault network operated by the U.S. Treasury,' with token acquisitions completed through the diversification of existing Federal Reserve funds (such as bonds, loans, and gold).
Last July, elected President Donald Trump also supported the 'strategic Bitcoin reserve' at BTC 2024 held in Nashville—one of many cryptocurrency-related promises he hopes to fulfill after taking office.
Trump stated at the event: 'This will be the policy of my administration... to retain 100% of all Bitcoin that the U.S. government currently holds or acquires into the future.'
At the state level, efforts to establish Bitcoin reserves are also underway.
A Texas legislator proposed a bill last week to establish a Bitcoin reserve for the state, with a minimum holding period of five years. Meanwhile, a similar bill was also proposed in Pennsylvania in November.
Brazil
The Brazilian government proposed a bill to establish a national Bitcoin reserve.
According to the proposed legislation submitted on November 25, the Bitcoin Sovereign Strategic Reserve (RESBit) will account for 5% of Brazil's international reserves. Its goal is to diversify the assets of Brazil's treasury.
Federal Deputy Eros Biondini stated in the proposed legislation that including Bitcoin in the treasury 'will reduce the risks Brazil faces from exchange rate fluctuations and geopolitical issues, enhancing economic resilience.'
According to the proposal, the Central Bank of Brazil will work with the Treasury to manage the Bitcoin reserves. These funds will be used to support Brazil's CBDC, known as Drex. According to the bill, Bitcoin will be stored in cold wallets.
Poland
Polish presidential candidate Sławomir Mentzen advocates for establishing a strategic Bitcoin reserve and supports cryptocurrency-friendly laws and regulations in Poland.
Sławomir Mentzen stated in a post on X (formerly Twitter): 'If I become the President of Poland, our country will become a haven for cryptocurrencies, with very friendly regulations, low tax rates, and a supportive attitude from banks and regulatory agencies.'
The politician stated in another X post: 'It's time for Polish politicians to look to the future.'
This far-right nationalist candidate ranks third in polls in Eastern European countries. It is not yet clear whether Mentzen's political opponents also support establishing a strategic Bitcoin reserve.
Russia
According to Russia's state news agency Ria, last December, Russian parliamentary representative Anton Tkachev proposed establishing a national Bitcoin reserve.
Last November, several Russian lawmakers suggested establishing a 'cryptocurrency reserve' in the 'treasury,' but were opposed by Anatoly Aksakov, chairman of the Russian State Duma Committee.
They also successfully passed legislation this fall that legalizes cryptocurrency mining and the use of digital assets for international payments.
Russia's recent shift in attitude towards cryptocurrency indicates that it may reconsider the strategic Bitcoin reserve issue; at least one senior Russian official has previously expressed support for this proposal.
In an interview with the Russian International News Agency in 2021, Russian Deputy Foreign Minister Alexander Pankin stated the willingness to replace part of the country's dollar-based reserves and trade settlements with other currencies, including cryptocurrencies.
Alexander Pankin stated that Russia may replace the dollar with various national currencies, 'and in the future, there may be some form of digital assets.'
Japan
Japanese legislator Satoshi Hamada submitted a formal request to the legislative body in December, hoping to start discussions on establishing a national Bitcoin reserve in Japan.
The party of Akira Hamada holds only two seats in the Japanese parliament, but there are other Bitcoin supporters in the legislative body— in October, the leader of the Constitutional Democratic Party, Yuichiro Tamaki, proposed tax cuts and regulatory reforms for cryptocurrency holders and companies in Japan.
Related reading: 'Strategic Reserves' trend rises, will Bitcoin reshape the 'balance sheets' of sovereign nations and corporate entities?
