Bitcoin has emerged as a strong challenger to traditional assets such as gold, leading to a global debate about BTC’s role in becoming a national reserve asset.
President-elect Donald Trump kicked off discussions about Bitcoin reserves when he advocated it as “the core of financial independence” for the United States.
States Consider Bitcoin as a Financial Lifesaver
According to Dennis PorterCEO and co-founder of Satoshi Action Fund (SAC), at least 13 US states out of 50 are studying the creation of Bitcoin reserves.
“I can confirm that at least 13 states are working on Strategic Bitcoin Reserve legislation. January will be a record month for Bitcoin policy,” Porter tweeted on January 3.
On October 1, Senator Cynthia Lummis initially proposed establishing a Bitcoin reserve in the United States. In one another tweetPorter added that there will be a “huge wave” of Bitcoin policy in 2025.
“Another Senator emailed us and wanted to legislate on the Strategic Bitcoin Reserve. There is a policy wave coming in Bitcoin and SatoshiActFund is leading the way,” he said.
This news is not entirely surprising as many US lawmakers have spoken out in support of Bitcoin reserves.
Derric Merin from Ohio said in October that as the USD faces devaluation, Bitcoin provides a means to diversify state portfolios and protect public funds. He introduced a bill to establish Bitcoin reserves with Ohio’s treasury.
A representative from Texas also introduced a BTC reserve bill in October February. However, instead of buying Bitcoin directly, the bill would allow Texas to receive taxes, fees, and donations in BTC.
Similar laws have been introduced in the states of Pennsylvania and Florida. The Pennsylvania Bitcoin Act proposes to allocate up to 10% of the $7 billion state treasury fund to Bitcoin.
In fact, asset management firm VanEck recently predicted that the United States could reduce its national debt by 36% by 2025 if it adopted Bitcoin reserves.
Discussion about Bitcoin reserves is also increasing globally. Countries like Japan, Switzerland, and Russia are trying to establish BTC reserves. For example, the city of Vancouver has approved a plan to integrate Bitcoin into its financial reserves.
What is interesting is that not only the government but companies like MicroStrategy, Tesla, Marathon Digital and many others are also hoarding Bitcoin.
