Bitcoin "convinces people with its rising value". Which countries are considering establishing national reserves?

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 the way in this regard, having made Bitcoin a legal tender while gradually accumulating Bitcoin as its own reserves starting in 2021.

While it’s unclear whether other countries will actually reserve Bitcoin in the short term, one thing is clear: interest in holding the coin as a reserve asset has reached a fever pitch. Here are the countries that are considering establishing national Bitcoin reserves.

USA

Several U.S. lawmakers have pushed for the creation of a strategic Bitcoin reserve.

Wyoming Senator Cynthia Lummis introduced a bill last spring called the Bitcoin Act, which proposed that the U.S. purchase up to 200,000 bitcoins per year for five years, or 5% of the token's total supply.

Bitcoin will be stored in a “decentralized network of secure Bitcoin vaults operated by the U.S. Treasury,” and token acquisition will be done through diversification from existing Fed funds such as bonds, loans, and gold.

President-elect Donald Trump similarly endorsed a “strategic Bitcoin reserve” at BTC 2024 in Nashville last July — one of many cryptocurrency-related promises he’s expected to fulfill once he takes office.

“It will be the policy of my administration ... to retain 100% of all Bitcoin currently held or acquired by the United States government into the future,” Trump said at the event.

Efforts to build up Bitcoin reserves are also underway at the state level.

A Texas lawmaker last week introduced a bill that would allow the state to build a bitcoin reserve to be held for at least five years, while a similar bill was introduced in Pennsylvania in November.

Brazil

The Brazilian government has introduced a bill proposing the creation of a national Bitcoin reserve.

The Sovereign Strategic Reserve of Bitcoin (RESBit) will account for 5% of Brazil’s international reserves, according to proposed legislation submitted on November 25. Its goal is to diversify the Brazilian Treasury’s assets.

Federal Vice President Eros Biondini said in the proposed bill that including Bitcoin in the national treasury "will reduce Brazil's exposure to exchange rate fluctuations and geopolitical risks and enhance economic resilience."

Under the proposal, the Central Bank of Brazil will work with the Ministry of Finance to manage Bitcoin reserves. These funds will be used to support Brazil's CBDC, Drex. According to the bill, Bitcoin will be stored in cold wallets.

Poland

Polish presidential candidate Sławomir Mentzen has advocated for the creation of a strategic Bitcoin reserve and for the passage of crypto-friendly laws and regulations in Poland.

“If I become president of Poland, our country will become a safe haven for cryptocurrencies, with very friendly regulations, low taxes, and a supportive attitude from banks and regulators,” Sławomir Mentzen said in a post on X (formerly Twitter).

"It's time for Polish politicians to look to the future," the politician said in another X post.

The far-right nationalist candidate is third in opinion polls in the Eastern European country. It is unclear whether Mentzen’s political opponents also support the creation of a strategic Bitcoin reserve.

Russia

In December last year, Russian parliament deputy Anton Tkachev proposed the creation of a national Bitcoin reserve, according to Russian state news agency Ria.

Last November, several Russian lawmakers proposed creating a “cryptocurrency reserve” in the “state treasury,” but were opposed by Anatoly Aksakov, the 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 toward cryptocurrencies suggests the country may revisit the issue of a strategic Bitcoin reserve, a proposal that at least one senior Russian official has previously expressed support for.

In a 2021 interview with Russia's Interfax news agency, Russian Deputy Foreign Minister Alexander Pankin expressed willingness to partially replace the country's dollar-based reserves and trade settlements with other currencies, including cryptocurrencies.

Alexander Pankin said that 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 submitted a formal request to the legislature in December, hoping to start discussions on establishing a national Bitcoin reserve in Japan.

Hamada’s party holds just two seats in Japan’s parliament, but there are other Bitcoin supporters in the legislature — in October, Democratic Party for the People leader Yuichiro Tamaki proposed tax cuts and regulatory changes for cryptocurrency holders and companies in Japan.

Related reading: As the “strategic reserve” trend emerges, will Bitcoin reshape the “balance sheets” of sovereign states and corporate institutions?