Original | Odaily (@OdailyChina)
Author | Dingdang (@XiaMiPP)
In 2025, Bit is no longer a toy for niche investors, but a key chess piece in the global economic chessboard. From El Salvador making Bit its legal tender, to the Chinese mainland banning Bit transactions, to the US attempting to establish a Bit reserve, the attitudes of different countries towards Bit reserves reflect vastly different strategic considerations, political positions and technological beliefs.In this emerging field, supporters see it as the vanguard of financial innovation, cautious ones are concerned about its volatility and regulatory challenges, and opponents view it as a threat to the traditional monetary system. This article will review the typical positions on Bit reserves globally and analyze the underlying motivations.
Supporters: Pioneers and Experimenters of Bit Reserves
US: Trump Ignites a "Bit Arms Race"
On March 7, 2025, Trump signed an executive order to formally establish a US strategic Bit reserve, using about 200,000 confiscated Bits as initial capital, aiming to consolidate the status of the US dollar and make the US the "global capital of Bit".
In this week's investment memo, Bitwise Chief Investment Officer Matt Hougan pointed out that Trump has completely changed the game rules of the Bit market. Hougan predicts that as a result, Latin American countries like Honduras, Mexico or Guatemala may closely follow the US and El Salvador to promote Bit as an important global currency asset. Galaxy Digital even boldly predicts that by the end of 2025, at least five countries will establish their own Bit strategic reserves.
This move by the US not only boosted market confidence (Bit price once exceeded $95,000), but also set a benchmark for the world, stimulating other countries to re-examine the strategic value of Bit.
Texas: Local Leads National-Level Change
The US's exploration of Bit reserves is showing a parallel trend between the federal and state levels. Texas has taken the lead, becoming the first state in the US to establish a state-level Bit fund. The SB 21 bill passed by the state senate created a Bit reserve fund, planning to hold Bit and other top cryptocurrencies with a market cap of over $500 billion, to be regulated by a dedicated advisory committee.
Lieutenant Governor Dan Patrick called this move an "important milestone in the development of Bit", aligning with Trump's national vision. Texas's pioneering attempt may provide a template for other states and even federal policies.
Utah: Ambition Frustrated but Not Abandoned
In comparison, Utah's exploration has been somewhat tortuous. Although its Bit bill "HB 230" was passed by the state senate with a 19:7 vote on March 7, 2025, the provision originally authorizing the state treasurer to invest in Bit reserves was deleted in the final review, leaving only custody protection and basic participation rights. Nevertheless, the bill is still seen as a symbolic step in local support for Bit.
El Salvador: The Courageous Lone Experimenter of Bit
El Salvador is the global pioneer of Bit reserves. In 2021, the country made Bit its legal tender, and President Nayib Bukele has continued to increase Bit holdings, with the official Bit reserve now around 6,000 Bits, in an attempt to counter inflation and US dollar dependence.
In early 2025, El Salvador reached a $1.4 billion loan agreement with the International Monetary Fund (IMF), which required it to abandon Bit's legal tender status, but Bukele clearly refused. As of now, the IMF has stated that El Salvador's Bit purchases have not yet violated the agreement (which will take effect on April 30), but subsequent negotiations may intensify the game between the two sides. This pioneering stance, though controversial due to international pressure and high volatility.
Cautious Ones: Coexistence of Observation and Limited Trials
UK: Clearly Rejects US-Style Reserves
The UK Treasury has clearly stated that it "has no plans" to introduce a US-style Bit reserve, reflecting its cautious attitude towards Bit. The UK is more inclined to view Bit as an asset rather than a strategic reserve, and the Financial Conduct Authority (FCA) ensures the compliance of the Bit market through strict AML and KYC regulations. The stablecoin law passed in 2023 and the exploration of central bank digital currency (CBDC) indicate that the UK may be more optimistic about controlled digital assets than decentralized Bit reserves.
Australia: Regulation First, Reserves Pending
The Australian government also holds a cautious stance. A spokesperson for Treasurer Stephen Jones said, at this stage, there is no intention to establish a Bit strategic reserve, with the current focus on improving the regulatory framework for digital asset platforms. This attitude is similar to the UK, emphasizing compliance and risk control rather than aggressively incorporating Bit into national reserves.
EU: Limited Opening under Unified Regulation
The EU has defined Bit as a "crypto asset" through the Crypto Asset Markets (MiCA) regulation, allowing its use in payments, but not encouraging it as a reserve asset. MiCA will take effect by the end of 2024, requiring crypto service providers to comply with strict regulations. The EU's attitude is to seek a balance between innovation and stability, and it is unlikely to see member states emulate the US's reserve policy in the short term.
Japan: Gradual Exploration under Friendly Regulation
Japan was one of the earliest countries to regulate Bit, passing the revised Payment Services Act (PSA) in 2017 to define Bit as legal property, and requiring exchanges to register and implement strict KYC and AML measures under the Financial Services Agency (FSA) framework.
In March 2025, the ruling Liberal Democratic Party (LDP) of Japan has drafted a crypto tax reform proposal, aiming to reduce the crypto tax rate from the current maximum of 55% to 20%, and reclassify it as a financial product subject to the Financial Instruments and Exchange Act, similar to the tax treatment of securities investments. Currently, crypto asset gains are treated as "miscellaneous income" in Japan, with a maximum tax rate of 55%. If the proposal is approved, crypto assets may receive independent tax treatment and lay the foundation for spot crypto ETFs. The LDP is seeking public feedback until March 31, after which it will be submitted to the FSA for review.
The Bank of Japan and the Ministry of Finance hold a cautious attitude towards the volatility of Bit, and former Prime Minister Shigeru Ishiba has expressed hesitation about Bit reserves, but they are inclined to create a favorable environment for Bit through tax and regulatory measures.
South Korea: From Observation to Active Discussion
South Korea's stance on Bit has gradually opened up in recent years, especially after the US established a Bit reserve, with domestic discussions on its strategic value heating up. On March 9, 2025, financial experts and opposition party members proposed at a Seoul forum to include Bit in the national reserve and develop a Won-backed stablecoin to keep up with global trends.
Opposition: Banning and Alternative Paths
China: Comprehensive Ban, Digital Yuan Priority
China's attitude towards Bit has been consistent: a complete ban. Since 2021, China has banned crypto trading and mining, believing it threatens financial stability and capital controls. In 2025, this position has not relaxed, the government is vigorously promoting the digital CNY (e-CNY), using the controllable central bank digital currency to replace decentralized crypto assets, and accelerating the application and international cooperation of the digital CNY. China's opposition to crypto reserves is both out of economic security considerations and the defense of monetary sovereignty.
India: From Ban to Heavy Taxation
While India has not banned Bit as comprehensively as China, it remains highly vigilant. After the 2018 trading ban was overturned by the Supreme Court in 2020, India has defined it as a "virtual digital asset", imposing a 30% capital gains tax and a 1% transaction tax, the high tax rate has led 95% of India's trading volume to move to overseas platforms.
In 2025, India has not yet shown a willingness to build crypto reserves, but the decision of the Trump administration to establish Bit reserves has prompted India to re-evaluate its position. Ajay Seth, Economic Affairs Secretary of India, stated that "multiple jurisdictions have changed their attitudes towards Bit, and we cannot unilaterally decide", indicating India's attention to global trends.
