By Liz Napolitano, Decrypt
Compiled by: Felix, PANews
Some countries are considering establishing national bitcoin reserves, driven by a historic market rally that has seen the world's largest cryptocurrency hit new highs in recent weeks, with the price of the digital currency topping $100,000 for the first time earlier this month.
U.S. President-elect Donald Trump and his allies have repeatedly supported bills to keep Bitcoin reserves at the Federal Reserve, and it may soon be possible to achieve this goal.
Brazilian government officials have also proposed legislation to make this possible, while politicians in Poland and Russia have also supported the idea of adding digital currencies to their national balance sheets.
El Salvador is leading in this aspect, 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 fervent level. Here are the countries considering establishing national Bitcoin reserves.
United States
Several U.S. lawmakers have 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 up to 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," and the acquisition of tokens will be completed through the diversification of existing Federal Reserve funds (such as bonds, loans, and gold).
Last July, elected President Donald Trump also supported a "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 keep 100% of all Bitcoins currently held or acquired by the U.S. government for the future."
At the state level, efforts to establish Bitcoin reserves are also underway.
A Texas lawmaker proposed a bill last week suggesting that the state establish a Bitcoin reserve to hold for at least five years. Meanwhile, Pennsylvania also proposed a similar bill in November.
Brazil
The Brazilian government has proposed a bill to establish a national Bitcoin reserve.
According to the proposed legislation submitted on November 25, the sovereign Bitcoin strategic reserve (RESBit) will account for 5% of Brazil's international reserves. Its goal is to diversify the assets of the Brazilian Ministry of Finance.
Federal Deputy Eros Biondini stated in the proposed bill that including Bitcoin in the treasury "would reduce Brazil's exposure to exchange rate fluctuations and geopolitical risks, enhancing economic resilience."
According to the proposal, the Brazilian central bank will work with the Ministry of Finance to manage the Bitcoin reserve. 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 the establishment of a strategic Bitcoin reserve and calls for 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 cryptocurrency with very friendly regulations, low tax rates, and a supportive attitude from banks and regulatory agencies."
This politician stated in another post on X: "It's time for Polish politicians to look to the future."
This far-right nationalist candidate is ranked third in polls in Eastern European countries. It remains unclear whether Mentzen's political opponents also support the establishment of a strategic Bitcoin reserve.
Russia
In December last year, Russian parliament representative Anton Tkachev proposed establishing a national Bitcoin reserve.
In November last year, several Russian lawmakers suggested establishing a "cryptocurrency reserve" in the "treasury," but faced opposition from Anatoly Aksakov, chairman of the Russian State Duma committee.
They also successfully passed legislation this fall that legalized cryptocurrency mining and the use of digital assets for international payments.
Russia's recent shift in attitude towards cryptocurrency suggests that the country may reconsider the strategic Bitcoin reserve issue, with at least one senior Russian official previously expressing support for this proposal.
In a 2021 interview with the Russian International News Agency, Russian Deputy Foreign Minister Alexander Pankin expressed a willingness to replace the country's dollar-based reserves and trade settlements with other currencies, including cryptocurrencies.
Alexander Pankin stated that Russia might replace the dollar with various national currencies, "in the future, there may be some kind of digital asset."
Japan
Japanese legislator Satoshi Hamada formally requested the legislative body in December to start discussions on establishing a national Bitcoin reserve in Japan.
The political party of Satoshi Hamada has only two seats in the Japanese Diet, but there are other Bitcoin supporters in the legislature — in October, Yuichiro Tamaki, the leader of the Constitutional Democratic Party, proposed tax cuts and regulatory reforms for cryptocurrency holders and companies in Japan.
Related reading: "The tide of 'strategic reserves' rises, will Bitcoin reshape the 'balance sheets' of sovereign nations and corporate entities?"
