Author: Liz Napolitano, Decrypt
Compiled by: Felix, PANews
Driven by the historic market rally, some countries are considering establishing national BTC reserves. In recent weeks, the world's largest cryptocurrency BTC has hit new highs, with BTC price first breaking through $100,000 at the beginning of this month.
President-elect Donald Trump and his allies have repeatedly supported bills to reserve BTC at the Federal Reserve, and this goal is likely to be achieved soon.
Brazilian government officials have also proposed legislation to realize this possibility, while politicians in Poland and Russia also support the idea of adding digital currencies to their national balance sheets.
El Salvador is taking the lead in this regard, making BTC a legal tender and gradually accumulating BTC as its own reserve starting in 2021.
While it is not yet clear whether other countries will actually reserve BTC in the short term, one thing is clear: the interest in holding this token as a reserve asset has reached a frenzy. Here are the countries considering establishing national BTC reserves.
United States
Several U.S. lawmakers have pushed for the establishment of a strategic BTC reserve.
Last spring, Wyoming Senator Cynthia Lummis introduced a bill called the "BTC Act" that proposed the U.S. purchase up to 200,000 BTC per year, or 5% of the total supply, over the next five years.
BTC would be stored in a "decentralized secure BTC vault network operated by the U.S. Treasury Department," and the token acquisitions would be funded through the diversification of existing Federal Reserve assets (such as bonds, loans, and gold).
In July last year, President-elect Donald Trump also voiced support for a "strategic BTC reserve" at the BTC 2024 event in Nashville - one of many crypto-related promises he is expected to fulfill after taking office.
Trump said at the event: "This will be the policy of my administration... to 100% retain all the BTC currently held or acquired by the U.S. government for the future."
At the state level, efforts to establish BTC reserves are also underway.
A Texas lawmaker proposed a bill last week that would have the state establish a BTC reserve, to be held for at least five years. Meanwhile, a similar bill was introduced in Pennsylvania in November.
Brazil
The Brazilian government has proposed a bill to establish a national BTC reserve.
According to the proposed legislation submitted on November 25, the BTC Sovereign Strategic Reserve (RESBit) would 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 incorporating BTC into the national treasury "will reduce Brazil's exposure to exchange rate fluctuations and geopolitical risks, strengthening economic resilience."
Under the proposal, the Central Bank of Brazil will manage the BTC reserve in cooperation with the Treasury. These funds will be used to support Brazil's CBDC, Drex. According to the bill, BTC will be stored in cold wallets.
Poland
Polish presidential candidate Sławomir Mentzen advocates establishing a strategic BTC reserve and pushing for crypto-friendly laws and regulations in Poland.
Sławomir Mentzen stated in an X (formerly Twitter) post: "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 regulators."
The politician said in another X post: "It's time for Polish politicians to look to the future."
This far-right nationalist candidate ranks third in opinion polls in the Eastern European country. It is unclear whether Mentzen's political opponents also support the establishment of a strategic BTC reserve.
Russia
According to the Russian state news agency Ria, in December last year, Russian parliament representative Anton Tkachev proposed the establishment of a national BTC reserve.
In November last year, several Russian lawmakers suggested creating a "crypto asset reserve" in the "national treasury," but this was opposed by Anatoly Aksakov, chairman of the State Duma Committee.
They also successfully passed legislation this fall to legalize crypto mining and the use of digital assets for international payments.
Russia's recent shift in attitude towards cryptocurrencies suggests that it may reconsider the issue of a strategic BTC reserve, as at least one senior Russian official has previously expressed support for the proposal.
In an interview with the Russian International News Agency in 2021, Deputy Foreign Minister Alexander Pankin said Russia would be willing to partially replace its dollar-based reserves and trade settlements with other currencies, including cryptocurrencies.
Alexander Pankin said Russia may replace the dollar with various national currencies, "and in the future, there may be some kind of digital asset."
Japan
Japanese lawmaker Satoshi Hamada formally submitted a request to the legislature in December to discuss the establishment of a national BTC reserve in Japan.
Hamada's party holds only two seats in the Japanese Diet, but there are other BTC supporters in the legislature - in October, Democratic Party for the People leader Yuichiro Tamaki proposed tax cuts and regulatory reforms for crypto holders and companies in Japan.
Related reading: "Strategic Reserve" Tide Rises, Will BTC Reshape the "Balance Sheets" of Sovereign States and Corporate Institutions?
