Driven by a historic market surge, some countries are considering establishing national Bitcoin reserves. In recent weeks, the world's largest cryptocurrency, Bitcoin, has reached new highs, with its price first breaking $100,000 earlier this month.
U.S. President-elect Donald Trump and his allies have repeatedly supported a bill to have the Federal Reserve hold Bitcoin reserves, and this goal may soon be realized.
Brazilian government officials have also proposed legislation to realize this possibility, while politicians from Poland and Russia support the idea of adding digital currencies to their national balance sheets.
El Salvador is leading the way in this regard by designating Bitcoin as legal tender while gradually accumulating Bitcoin as its own reserves since 2021.
While it remains unclear whether other countries will truly reserve Bitcoin in the short term, one thing is obvious: interest in holding the token as a reserve asset has reached a frenzied 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. should purchase up to 200,000 Bitcoins annually for five years, or 5% of the total supply of the token.
Bitcoin would be stored in a 'decentralized secure Bitcoin vault network operated by the U.S. Treasury,' and the acquisition of the tokens would be accomplished through diversification of existing Federal Reserve funds (such as bonds, loans, and gold).
In July last year, President-elect Donald Trump also supported the 'strategic Bitcoin reserve' at the BTC 2024 event in Nashville—one of many cryptocurrency-related promises he hopes to fulfill after taking office.
Trump stated at an event: 'This will be the policy of my administration... to retain 100% of all Bitcoin 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 to establish a Bitcoin reserve for the state, to be held 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 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 the Brazilian Treasury.
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 would collaborate with the Treasury to manage the Bitcoin reserves. These funds would be used to support Brazil's CBDC, Drex. Under the bill, Bitcoin would be stored in cold wallets.
Poland
Polish presidential candidate Sławomir Mentzen advocates the establishment of a strategic Bitcoin reserve and supports the passage of 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 taxes, 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 remains unclear whether Mentzen's political opponents also support the establishment of a strategic Bitcoin reserve.
Russia
According to Russian state news agency Ria, in December last year, Russian parliamentary representative Anton Tkachev proposed the establishment of a national Bitcoin reserve.
In November last year, several Russian lawmakers suggested establishing a 'cryptocurrency reserve' in the 'Treasury,' but this was opposed by Anatoly Aksakov, chairman of the Russian State Duma committee.
They also successfully passed legislation this autumn that legalized 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, and 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 a willingness to replace part of 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, and 'in the future, there might be some kind of digital asset.'
Japan
Japanese legislator Satoshi Hamada submitted a formal request to the legislative body in December to discuss the establishment of a national Bitcoin reserve in Japan.
The party of Satoshi 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.
