Bitcoin reserves interest gains momentum across 5 continents

In the last year, Bitcoin (BTC) has gained such popularity that lawmakers and regulators across five continents now consider it a potential reserve asset — a transferable store of value held by a central bank that can be used to settle transactions. 

Czechia has become the latest country to make headlines for considering such a move. Aleš Michl, governor of the Czech National Bank (CNB), said on Jan. 5 that the bank was considering Bitcoin within the country’s foreign exchange reserve diversification strategy.

Meanwhile, a bill is circulating in US Congress that would compel the Treasury to establish a national Bitcoin reserve, acquiring 1 million BTC over five years in 200,000 BTC annual purchases. Pressure is rising for governments in other countries to follow suit, like in Switzerland and Poland.

Cointelegraph has compiled a map of all nations where a Bitcoin reserve has captured the attention of governments. For the first time in history, this map spans five continents and includes nine countries.

Bitcoin reserve in US, Brazil in the works

El Salvador is the only country so far to have a Bitcoin reserve established. Under the direction of President Nayib Bukele, the nation made history in 2021 by becoming the first to recognize BTC as legal tender. Bukele has amassed a Bitcoin trove of 6,022 BTC worth over $560 billion at publishing time.

The US and Brazil may soon join El Salvador as the second and third countries to adopt a Bitcoin reserve.

United States

Bitcoin was firmly in the spotlight during the 2024 US federal elections, as politicians developed cryptocurrency policies in an effort to woo voters and get funding from the crypto lobby.

President-elect Donald Trump has made a number of bullish statements regarding crypto, claiming that the US should be a global leader in the industry. Added to the strong rhetoric is a bill currently circulating in Congress that would compel the US government to establish a Bitcoin reserve. 

Senator Cynthia Lummis’ BITCOIN Act of 2024 would have the US Treasury establish a national Bitcoin reserve, acquiring 1 million BTC over five years in 200,000 BTC annual purchases. 

While Lummis is in the majority — the Republicans now hold majorities in both houses of the US Congress — support among fellow lawmakers may not be sufficient to turn the bill into law.

Crypto has supporters on both sides of the aisle, but a 200,000-BTC purchase at current prices equates to over $18 billion, and American voters still aren’t sold on Bitcoin’s value proposition, with many believing crypto is a passing fad.

Brazil

Similar to the US, legislators in Brazil have introduced a bill that would establish a Bitcoin reserve. Introduced on Nov. 25, it argues that a Sovereign Strategic Bitcoin Reserve — RESBit for short — would stabilize the rial and shield the sovereign reserves from currency fluctuations and geopolitical risks.

At publishing time, various commissions and committees in Brazil are reviewing the legislature. If adopted, it would allow for a 5% allocation of Bitcoin within Brazil’s sovereign reserves. 

Under consideration in Russia, Czechia

In Czechia and Russia, top officials in the central banks and finance ministries are considering a Bitcoin reserve.

Russia

Companies based in Russia began using cryptocurrencies for international payments in July 2024, following law changes that allow the use of crypto to circumvent Western sanctions. 

This workaround has received widespread public approval among Russian officials. At a Nov. 6, 2024, presentation at the Russian Society of Knowledge, Finance Minister Anton Siluanov said that, while he does not recommend retail investors jump into crypto, digital assets serve an important role as a means of international settlement in the current geopolitical climate. 

“International trade participants — importers and exporters — instead of calculating with [fiat] currency, use crypto wallets and use crypto for their settlements. And why not? In the current state of affairs, it’s justified.”

This crucial function has apparently led Deputy of the State Duma Anton Tkachev to make an official request to Siluanov just last month, asking that the state create a strategic Bitcoin reserve.

Tkachev reportedly pointed to the growing instability of traditional currency reserves like the Chinese yuan and US dollar, adding that crypto “factually becomes the sole instrument for international trade” for countries under sanctions. The central bank is reportedly preparing an experiment on cross-border settlements in cryptocurrencies.

Related: A Bitcoin Reserve Act may end crypto’s 4-year boom-bust cycle

Czechia

In Czechia, Aleš Michl, governor of the Czech National Bank (CNB), said in an interview that the bank was considering Bitcoin within the country’s foreign exchange reserve diversification strategy.

Michl noted that he was only considering acquiring a few Bitcoin, which would not represent a large part of the bank’s balance sheet. The acquisition plan would require the approval of all seven of the bank’s governors. 

Janis Aliapulios, an adviser to the CNB board, later told Cointelegraph that the bank has no formal acquisition plans, just that Michl will not rule one out.

“To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic.”

Pressure rising across the globe

Momentum is building for the creation of a Bitcoin standard in a number of countries, with high-profile policymakers and legal experts voicing support in Poland, Switzerland, Germany, South Africa, Hong Kong, Japan and Venezuela.

Switzerland

Switzerland has been friendly and forward-thinking with crypto since Bitcoin’s early days, with many major crypto firms and foundations setting up operations there.

The country could soon be taking crypto adoption one step further. On Dec. 5, 2024, crypto advocates, including Giw Zanganeh, vice president of energy and mining at Tether, and Yves Bennaïm, founder and chairman of Swiss Bitcoin nonprofit think tank 2B4CH, submitted a proposal to mandate the Swiss National Bank (SNB) to hold Bitcoin as a reserved asset.

The petitioners have until June 30, 2026, to accumulate 100,000 signatures. With a total population of 8.92 million, this means little more than 1% of Swiss citizens must sign.

2B4CH has long planned to submit such a proposal — but low support or enthusiasm postponed the idea. Bennaïm recently told Cointelegraph that the times have changed.

“Now, everything is falling into place, and this is why we submitted the documents and will start collecting the signatures.” 

If the petition gets the signatures it needs, the proposal for a “financially sound, sovereign and responsible Switzerland” will go to a referendum.

South Africa

The uMkhonto weSizwe Party (MKP) has also called for the establishment of a Bitcoin reserve in South Africa.

Last month, spokesman for the left-populist party Nhlamulo Ndhlela announced on X that the MKP “believes South Africa should consider adopting a Bitcoin strategic reserve as an asset, and implement Bitcoin mining initiatives as part of the broader economic revitalization and diversification strategy.”

While many calls for a Bitcoin reserve often use rhetoric around austerity, inflation and “number go up,” Ndhlela said that BTC could be a means of economic emancipation as the current government “continues to indebt our country with IMF & World Bank loans.”

Ndhlela said the plan would start small with a 1%–2% allocation, which could further help monetize 3 gigawatts of stranded renewable energy production. He further stated that this would reduce reliance on the dollar and help the country develop a regional financial strategy with BRICS partners.

MKP is currently an opposition party, with 58 seats in the 400-seat National Assembly.

The MK Party believes South Africa should consider adopting a Bitcoin strategic reserve as an asset, and implement Bitcoin mining initiatives as part of the broader economic revitalization and diversification strategy!!! Whilst this government continues to indebt our country with… pic.twitter.com/WcfFKRrUG2

— Nhlamulo Swabihi Ndhlela Ntukulu Wa Ka Moyane (@NhlamuloNdhlela) December 20, 2024

Related: Kenya drafts legislation to regulate cryptocurrencies

Poland

Presidential candidate Sławomir Mentzen has promised to make Bitcoin a reserve asset if he wins Poland’s May 2025 presidential election.

Mentzen, who is part of the far-right, nationalist Confederation Liberty and Independence coalition, saw a surge in support at the end of last year from 2% of voters to just over 10%. 

This still puts him well behind front-runner Rafał Trzaskowski, the current mayor of Warsaw and member of the center-right Civic Coalition.

Germany

Former German Federal Minister of Finance and Free Democratic Party leader Christian Linder told Handelsblatt on Dec. 30 that in the interest of not being left behind, Bundesbank — Germany’s central bank — should consider a Bitcoin Reserve:

“It should therefore be checked whether crypto assets should not also become part of the reserves of central banks.”

Linder added that crypto could strengthen reserve resilience as they represent “a significant part of the global increase in prosperity.”

Japan

In Japan, lawmaker Satoshi Hamada (the irony is not lost on Bitcoiners) appealed to the government to consider a Bitcoin reserve on Dec. 11, 2024.

“I believe that consideration should be given to this matter, and I would like to hear the government’s views,” Hamada said. 

However, Hamada’s curiosity isn’t shared by everyone. Local industry media reported that Japanese Prime Minister Shigeru Ishiba rejected the idea, stating that there is insufficient understanding of the push in many countries to form Bitcoin reserves.

For now, at least, the idea appears to be tabled.

Hong Kong

In Hong Kong, China’s “one country, two systems” policy could serve as an inroad for the city-state to adopt Bitcoin reserves, at least according to one local politician. 

Wu Jiexhuang, a member of Hong Kong’s Legislative Council, told local media that Hong Kong regulators and lawmakers should study the effects of Bitcoin exchange-traded funds in the US and noted the potential for a Bitcoin reserve in the US to influence markets.

Wu said that Hong Kong would be better positioned to weather disruptions in traditional markets if it held Bitcoin on its own balance sheet. 

Venezuela

Finally, the embattled political opposition of Venezuela is looking to a Bitcoin reserve as a means of addressing some of the many problems facing the country.

Venezuelan opposition leader María Corina Machado, the national coordinator of the political party Vente Venezuela, said in September that Bitcoin has become a lifeline for Venezuelans that has “evolved from a humanitarian tool to a vital means of resistance.”

Machado proposed adopting Bitcoin at the national level, including it as part of Venezuela’s reserves to help stabilize the economy.

Rising interest in Bitcoin among top officials is bringing it even closer to the mainstream. Still, some skeptics remain. While leaders in some parts of the world have jumped in with both feet, pro-Bitcoin policymakers still have a long way to go to convince their colleagues of Bitcoin’s value proposition. 

Magazine: Trash collectors in Africa earn crypto to support families with ReFi