- Bitcoin adoption is on the rise in the US, fueled by government proposals for Bitcoin reserves and the incoming Trump administration.
- El Salvador’s pioneering move to establish a Bitcoin reserve in 2021 has inspired other countries, including Hong Kong, Brazil and Poland, to explore similar strategies.
In recent months, Bitcoin adoption has gained significant momentum across the United States, with 13 states actively advocating the establishment of strategic reserves of the leading cryptocurrency. Traditionally met with skepticism by government officials and financial institutions, the perception of Bitcoin is changing. As inflation rates rise and economic uncertainties persist, many countries are rethinking their approach to digital currencies.
Under the Trump administration, the debate surrounding Bitcoin has evolved. Once a skeptic, President Trump has floated plans for a U.S. Bitcoin reserve with the goal of increasing economic stability. The proposal is currently being debated in Congress, with supporters like Senator Cynthia Lummis championing the idea.
IMPORTANT: I can confirm that at least 13 states are working on ‘Strategic Bitcoin Reserve’ legislation.
January will be a record month for Bitcoin politics.
— Dennis Porter (@Dennis_Porter_) January 3, 2025
They argue that Bitcoin’s limited supply, limited to 21 million coins, could make it a compelling addition to national reserves. Namely, the proposal seeks to settle the national debt of 36 trillion dollars while modernizing the American financial system and promoting economic independence.
Integrating Bitcoin as a strategic reserve asset can offer numerous advantages. Its limited supply makes it an attractive choice for countries looking to protect their finances from inflation and currency devaluation. Despite this, the regulatory landscape surrounding Bitcoin remains a critical issue.
States leading the charge
On December 12, Rep. Giovanni Capriglione introduced a bill aimed at creating a strategic Bitcoin reserve, potentially positioning Texas as a leader in cryptocurrency innovation and mining. This legislative effort was announced during an event hosted by Dennis Porter, founder of the advocacy group Satoshi Action Fund (SAF), according to the CNF report.
Ohio continues with plans to incorporate Bitcoin into its financial system. Representative Derek Merrin authored House Bill 703, known as the Ohio Bitcoin Reserve Act, which seeks to establish a state-managed Bitcoin fund to mitigate inflation and diversify the state’s financial portfolio.
In November, the Pennsylvania House of Representatives proposed a similar bill authorizing the state treasurer to allocate up to 10% of various state funds, such as the State General Fund and Rainy Day Fund, to purchase Bitcoin.
Besides the United States, other nations are exploring Bitcoin as a strategic asset. El Salvador, the first country to adopt Bitcoin as legal tender, is still expanding its cryptocurrency reserves, showing the potential benefits of such a move.
In Europe, key figures such as former German finance minister Christian Lindner have suggested that the European Central Bank consider Bitcoin to reduce dependence on the US dollar and focus on digital assets like Bitcoin. Additionally, in Hong Konglawmaker Wu Jiezhuang advocates integrating Bitcoin into the city’s financial reserves to increase economic resilience.
However, not all countries are included. For example, although Russia has started using Bitcoin for international transactions, there are hesitations about accepting it as an official reserve asset. Similarly, Japan expressed concern on the liquidity and volatile nature of Bitcoin’s market behavior. As of now, Bitcoin is trading at approximately $96,690 reflecting a 0.19% increase over the past day and a 0.76% increase over the past week.
