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In summary
- Various countries such as Brazil, Poland and Russia have proposed creating strategic reserves of Bitcoin as part of their economic policies.
- In the US, lawmakers such as Cynthia Lummis and Donald Trump have proposed acquiring and holding Bitcoin as a reserve asset.
- Brazil is looking to use Bitcoin to diversify its treasury and back its CBDC, while Poland and Russia are considering similar strategies.
Some countries are considering a national reserve of Bitcoin amid a historic market rally that has taken the world’s largest Cryptocurrency to new heights in recent weeks.
US President-elect Donald Trump and his allies have repeatedly shown support for a bill to supply the Federal Reserve with the asset, and they will soon be in a position to potentially make that a reality.
Government officials in Brazil have also introduced legislation to realize that possibility, while politicians in Poland and Russia have backed the idea of adding the digital currency to their nations’ balance sheets.
El Salvador led the charge on this front, making Bitcoin legal tender while gradually accumulating BTC for its own reserve starting in 2021—and now President Bukele is enjoying a victory as the asset rockets toward $100,000.
While it is unclear whether other countries will actually hoard Bitcoin anytime soon, one thing is obvious: interest in holding the token as a reserve asset has reached a peak. Here’s who is considering a national Bitcoin reserve.
USA
Several US lawmakers have pushed to establish a strategic Bitcoin reserve.
Senator Cynthia Lummis of Wyoming last spring introduced a bill called the “Bitcoin Act” that calls for the US to acquire up to 200,000 Bitcoin annually over a five-year period, or up to 5% of the token’s total supply.
Bitcoin would be held in a “decentralized network of secure Bitcoin vaults operated by the United States Department of the Treasury,” with token purchases being made through a diversification of existing Federal Reserve funds such as bonds, loans and gold.
President-elect Donald Trump similarly endorsed a “strategic Bitcoin reserve” last July at BTC 2024 in Nashville—one of many cryptocurrency-related promises he will be expected to deliver once in office.
“It will be the policy of my administration… to hold 100% of all Bitcoin that the US government currently holds or acquires in the future,” Trump said at the event.
Brazil
Brazil’s government has proposed a bill that would greenlight a national Bitcoin reserve.
The Sovereign Strategic Reserve of Bitcoins (RESBit) would represent 5% of Brazil’s international reserves, according to the proposed legislation, presented on November 25. Its objective is to diversify the assets of the Brazilian Treasury.
Adding Bitcoin to the Treasury “will reduce Brazil’s exposure to exchange rate fluctuations and geopolitical risks, increasing economic resilience,” Federal Deputy Eros Biondini said in the proposed bill.
Under the proposal, the Central Bank of Brazil would manage the Bitcoin reserve in partnership with the Ministry of Finance. Those funds would be used to support Brazil’s CBDC, called Drex. Bitcoin would be stored in cold wallets, according to the bill.
Poland
Polish presidential candidate Sławomir Mentzen has advocated for the creation of a strategic Bitcoin reserve as well as the passing of cryptocurrency-friendly laws and regulations in Poland.
“If I become President of Poland, our country will become a cryptocurrency paradise, with very friendly regulations, low taxes and a supportive approach from banks and regulators,” Mentzen said in a recent post on X (formerly known as Twitter).
“It is time for Polish politicians to also look to the future,” the politician said in another post on X.
The far-right nationalist candidate is in third place in polls in the Eastern European country. It is unclear whether Mentzen’s political opponents also support the creation of a strategic Bitcoin reserve.
Russia
Several Russian lawmakers this month have suggested creating a cryptocurrency “reserve” in “the state Treasury,” despite opposition from Russian State Duma Committee Chairman Anatoly Aksakov.
They also managed to pass legislation legalizing cryptocurrency Mining and the use of digital assets for international payments this fall.
Russia’s recent change of tone on cryptocurrencies suggests that the Eastern European country could revisit the issue of a strategic Bitcoin reserve, which at least one of its top officials has previously expressed support for.
In a 2021 interview with Russian news outlet Interfax, Deputy Foreign Minister Alexander Pankin expressed an openness to partially replacing the country’s US dollar-backed reserves and trade agreements with other currencies, including cryptocurrencies.
Russia could replace US dollars with various national currencies as well as “in the future, probably… with some kind of digital assets,” Pankin told the news outlet.
Edited by Andrew Hayward and Sebastian Sinclair
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