The global race for Bitcoin reserves
THE international race to establish Bitcoin as a strategic reserve asset is accelerating, with the United States, under President Donald Trump, seemingly pulling ahead.
As geopolitical tensions and economic uncertainties mount, governments worldwide are increasingly recognising the necessity of integrating Bitcoin into their national reserves. This movement, once dismissed as speculative, is now becoming a central pillar of financial strategy for leading economies.
Bitcoin’s appeal as a reserve asset stems from its decentralized nature, finite supply, and resistance to traditional financial manipulation.
Unlike fiat currencies, which are subject to inflationary pressures and central bank policies, the digital asset operates on a fixed supply of 21 million coins, making it an attractive store of value. Its censorship-resistant properties also make it a hedge against financial instability and geopolitical risks.
Historically, gold has served as a hedge against economic downturns and inflation, but Bitcoin is now becoming ‘digital gold’ with superior attributes, including easier storage, transferability, and liquidity.
Central banks and sovereign wealth funds are increasingly evaluating Bitcoin as a diversification tool in response to growing concerns over excessive monetary expansion and debt accumulation.
The US leads the charge
The United States has taken significant steps toward formalizing Bitcoin’s role in its financial framework. Trump’s backing of World Liberty Financial (WLF), a cryptocurrency platform, has resulted in the launch of a strategic token reserve supporting Bitcoin, Ethereum, and other leading digital assets.
This initiative is designed to mitigate market volatility while promoting investments in decentralized finance, demonstrating a long-term commitment to integrating crypto into national reserves.
Meanwhile, several US states, including Texas, Utah, and Arizona, are proposing legislation to allocate a portion of public funds into Bitcoin reserves. Utah’s Blockchain and Digital Innovation Amendments bill, for example, is gaining enormous traction, potentially setting a precedent for other states.
Trump's pro-crypto team
A key driver of America’s leadership in Bitcoin reserves is the pro-crypto stance of Trump's economic advisors and policymakers. His administration has surrounded itself with industry experts, including key figures advocating for Bitcoin-friendly regulation and financial policies.
Former SEC Chair Jay Clayton, who has since expressed support for Bitcoin ETFs, and venture capitalist Peter Thiel, a long-time advocate of decentralized finance, have played influential roles in shaping the administration's approach.
Trump's newly-appointed crypto and financial advisory board includes several prominent entrepreneurs, reinforcing the administration’s commitment to making the US a dominant player in the digital asset space.
Additionally, Trump’s close relationship with Bitcoin mining executives has encouraged domestic mining expansion, positioning America as the world leader in hash power. This synergy between public policy and private sector investment strengthens the case for a national Bitcoin reserve.
The momentum is not limited to the United States. In Europe, the Czech Republic is exploring the inclusion of Bitcoin in its central bank reserves. Czech National Bank Governor Aleš Michl has expressed interest in diversifying holdings by acquiring Bitcoin, reflecting a broader trend of European policymakers acknowledging digital assets’ strategic value.
Elsewhere, the Swiss National Bank, known for its progressive stance on digital finance, is considering pilot programs to hold Bitcoin as a reserve currency, further signalling institutional acceptance.
Russia is also weighing up its options regarding crypto reserves. With increasing sanctions restricting its access to global financial systems, the Russian government is actively investigating Bitcoin as a potential hedge against economic isolation. State Duma Deputy Anton Tkachev has proposed examining its feasibility as a reserve asset to bolster economic resilience.
China, despite its previous crackdown on Bitcoin mining and trading, is engaging with digital assets in a different manner. The People's Bank of China has been stockpiling Bitcoin through state-affiliated entities while aggressively advancing its own central bank digital currency (CBDC).
While China officially maintains restrictions on Bitcoin trading, it strategically accumulates the asset to diversify its financial holdings amid an intensifying rivalry with the US.
India, another major global player, is adopting a cautious yet evolving stance. While the Reserve Bank of India remains sceptical of crypto, policymakers are gradually opening up to the idea of Bitcoin as part of the country’s foreign reserves. Reports suggest that India’s central bank is reviewing Bitcoin’s potential role in trade settlements and as a hedge against currency fluctuations.
In Latin America, El Salvador remains the torchbearer for Bitcoin adoption at the national level, having declared Bitcoin as legal tender in 2021. The country has accumulated Bitcoin as part of its treasury holdings, with President Nayib Bukele reaffirming its role as a long-term reserve asset.
Argentina, facing persistent inflation crises, is now also considering a partial Bitcoin reserve strategy to stabilise its economy under the leadership of pro-Bitcoin President Javier Milei.
The United Arab Emirates, known for its financial innovation, is also exploring Bitcoin reserves through its sovereign wealth funds. The UAE has been positioning itself as a crypto hub, with Dubai leading the charge in regulatory advancements that could facilitate institutional adoption at the national level.
Meanwhile, Japan and South Korea, two of Asia’s most technologically advanced economies, are increasingly engaged in the Bitcoin reserve conversation. Japan’s Financial Services Agency is actively assessing Bitcoin’s role in the country’s financial stability framework, while South Korea’s government is funding research into Bitcoin-backed digital assets as a component of national reserves.
The strategic accumulation of Bitcoin by nations is no longer theoretical - it’s a reality reshaping the global economic order. The US, under Trump’s leadership, is moving swiftly, but it faces competition from other major economies that recognise Bitcoin’s potential as a store of value and an economic hedge.
As this race intensifies, Bitcoin is increasingly seen as a cornerstone of modern financial strategy, positioning early adopters for significant economic advantages in the years ahead.
Governments that integrate Bitcoin into their financial reserves are, I believe, securing an early advantage in the critical digital economy.
Nigel Green, deVere Group CEO and founder
