- Bitcoin reserves are becoming a global trend, with many entities adding BTC to their balance sheets.
- Notably, Brazil is moving to establish a sovereign Bitcoin reserve, with high crypto adoption rates bolstering its potential.
- A Russian lawmaker has also recently proposed creating a Bitcoin reserve as the country deals with international sanctions.
- Florida and Pennsylvania in the US are planning to add Bitcoin to their financial strategies, joining other regions like Vancouver and Bern.
There is a growing trend making its way around the world: countries, states and companies are all racing to catch up with it – Bitcoin reserves.
Adding Bitcoin to the balance sheet is the latest trend, and it seems everyone is adding some BTC to their stash. Well, everyone apart from Germany, who sold all their Bitcoin earlier.
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Whether it was MicroStrategy that started it all, the launch of the US Spot Bitcoin exchange-traded funds (ETFs), or Donald Trump saying he will establish a Bitcoin reserve, there is increasing discussion about the topic.
Russia Joins Brazil in National Adoption Efforts
One of the biggest developments in recent times is, of course, that the United States could be adding BTC to its reserves. While President-elect Donald Trump has voiced his support, it’s not clear if this will be easy to actually implement.
Other countries have moved at a faster pace, with Brazil recently introducing a bill that could see the establishment of a sovereign Bitcoin reserve called Sovereign Strategic Bitcoin Reserve (RESBit).
Brazil, with high crypto adoption rates and a large population, is a promising candidate. Another is Russia.
RIA Novosti reports that Anton Tkachev, a State Duma member (the lower house of the Russian parliament), has just submitted a formal appeal to create a Bitcoin reserve. The proposal to Finance Minister Anton Siluanov comes as Russia continues to grapple with international sanctions.
In conditions where access to traditional international payment systems is limited for countries under sanctions, cryptocurrencies become practically the only tool for international trade. The Central Bank of Russia is already preparing to launch an experiment on cross-border payments in cryptocurrency.
Proposal to Finance Minister Anton Siluanov
Florida, China, Who’s Next?
Not quite a nation-state, but a large US state nevertheless, Florida is said to be joining the illustrious group of governments holding Bitcoin. According to the Florida Blockchain Business Association (FBBA), the Sunshine State is working towards a 2025 implementation.
FBBA President Samuel Armes commented on the importance of investing even small amounts in BTC, acknowledging that pension funds already hold crypto:
To be clear, Florida has already invested in Bitcoin and crypto-related assets through our pension fund. […] Just investing one percent of our pension fund into Bitcoin would be $1.85 billion.
FBBA President Samuel ArmesFlorida would join fellow US state Pennsylvania, which is working on a Strategic Bitcoin Reserve Act.
There are also cities working on adding just a little speck of Bitcoin magic to their town’s portfolio. CNA recently reported that the Canadian city of Vancouver and the Swiss canton Bern are gearing up to stack sats.
Related: Czech Republic to Exempt Long-Term Bitcoin Holdings from Capital Gains Tax Starting 2025
And even China may be looking to get in on the action. Changpeng “CZ” Zhao, founder and former Binance CEO, believes there’s a strong case for China to follow the US’s lead.
Speaking at the Bitcoin MENA conference in Abu Dhabi, 9 December, CZ said it’s “inevitable” China will eventually establish a reserve, because Bitcoin is “the only ‘hard’ asset”.
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