Some countries are considering adding Bitcoin to their national reserve portfolios as the historic price surge has pushed the world's largest cryptocurrency by market capitalization to new highs in recent weeks.
U.S. President-elect Donald Trump and his allies have repeatedly endorsed a bill to reserve this asset for the Federal Reserve (Fed), and they may soon make that a reality.
Government officials in Brazil have also introduced legislation to materialize that possibility, while politicians in Poland and Russia have endorsed the idea of adding digital currency to their countries' balance sheets.
El Salvador is leading the way, making Bitcoin legal tender while gradually accumulating BTC as a reserve starting in 2021. Currently, President Bukele is celebrating a victory as this asset has surged to $100,000.
While it remains unclear whether other countries will actually hold Bitcoin in the near future, one thing is evident: the interest in holding this token as a reserve asset has reached a peak. Here are the countries considering a national Bitcoin reserve.
Some U.S. lawmakers have pushed for the establishment of a strategic Bitcoin reserve.
Last spring, Senator Cynthia Lummis from Wyoming introduced a bill called the "Bitcoin Bill" calling for the U.S. to buy up to 200,000 Bitcoin per year for a period of 5 years or up to 5% of the token's total supply.
The Bitcoin would be stored in a "decentralized network of secure Bitcoin vaults operated by the U.S. Department of the Treasury," with the token purchases made through diversifying the Fed's existing funds like bonds, loans, and gold.
President-elect Donald Trump also confirmed a "strategic Bitcoin reserve" in July at BTC 2024 in Nashville — one of many cryptocurrency-related promises he will have to fulfill when taking office.
"The policy of my administration will be to hold on to 100% of all the Bitcoin that the U.S. government currently holds or purchases in the future," Trump said at the event.
The Brazilian government has proposed a bill that will greenlight a national Bitcoin reserve.
According to the bill introduced on November 25, the Sovereign Strategic Reserve of Bitcoins (RESBit) will account for 5% of Brazil's international reserves. The bill aims to diversify the assets of the Brazilian Treasury.
Incorporating Bitcoin into the Treasury "will minimize Brazil's exposure to exchange rate volatility and geopolitical risks, increasing economic resilience," Federal Reserve Deputy Governor Eros Biondini said in the proposed bill.
Under the proposal, the Central Bank of Brazil will manage the Bitcoin reserve through a partnership with the Ministry of Finance. The funds will be used to support Brazil's CBDC, called Drex. According to the bill, Bitcoin will be stored in cold storage.
Polish presidential candidate Sławomir Mentzen supports creating a strategic Bitcoin reserve, as well as passing crypto-friendly laws and regulations in Poland.
"If I become the President of Poland, our country will become a crypto paradise, with very friendly regulations, low taxes, and a supportive approach from banks and regulators," Mentzen said in a recent post on X.
"It's time for Polish politicians to also look to the future," the right-wing nationalist politician said in another X post.
This far-right nationalist candidate is currently third in the polls in Poland. It's unclear if Mentzen's political opponents would support the creation of a strategic Bitcoin reserve.
This month, some Russian lawmakers have proposed creating a "cryptocurrency treasury" in the "State Treasury," despite opposition from the chairman of the State Duma Committee Anatoly Aksakov.
They have also successfully passed legislation legalizing cryptocurrency mining and the use of digital assets for international payments this fall.
Russia's recent crypto changes suggest the Eastern European country may reconsider the issue of a strategic Bitcoin reserve, with at least one of its senior officials previously expressing support.
In a 2021 interview with Russia's Interfax news agency, Deputy Foreign Minister Alexander Pankin expressed openness to replacing a portion of the country's U.S. dollar-backed reserves and trade transactions with other currencies, including cryptocurrencies.
Russia could replace the U.S. dollar with various national currencies as well as "possibly some digital assets in the future," Pankin told the news agency.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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