Bitcoin reserves are becoming a global trend, with many companies adding BTC to their balance sheets. Brazil, in particular, is moving towards establishing a sovereign Bitcoin reserve, and its high cryptocurrency adoption rate makes this a possibility. Russian lawmakers also recently proposed creating a Bitcoin reserve fund in response to international sanctions. The US states of Florida and Pennsylvania are planning to add Bitcoin to their financial strategies, joining other regions such as Vancouver and Bern.
This trend is taking off around the world, with countries, states, and companies all racing to catch up with this trend of Bitcoin reserves.
Adding Bitcoin to your balance sheet is the latest trend and it seems like everyone is adding Bitcoin to their stash. Well, everyone except Germany who sold all their Bitcoin first.
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Whether it was MicroStrategy that started it all, the launch of the US spot Bitcoin exchange-traded fund (ETF), or Donald Trump's announcement that he would create a Bitcoin reserve fund, There is increasing discussion on the topic.
Participating in domestic adoption activities in Russia and Brazil
One of the biggest recent developments is, of course, the possibility of the US adding BTC to its reserves. President-elect Donald Trump has expressed support for it, but it's unclear whether this would be easy to implement.
Other countries are also moving at a faster pace, with Brazil recently introducing legislation that could allow for the creation of a sovereign Bitcoin reserve called the Sovereign Strategic Bitcoin Reserve (RESBit).
Brazil is a likely candidate because it has a high adoption rate of virtual currency and a large population. The other is Russia.
RIA Novosti reported that Anton Tkachev, a member of the State Duma (lower body of the Russian parliament), has submitted a formal request for the creation of a Bitcoin reserve fund. The proposal to Finance Minister Anton Siluanov comes as Russia continues to fight international sanctions.
In situations where countries under sanctions have limited access to traditional international payment systems, cryptocurrencies effectively become the only tool for international trade. Russia's central bank is already preparing to start experimenting with cross-border payments using cryptocurrencies.
Proposal to Minister of Finance Anton Siluanov
Florida, China, who's next?
Despite being a large state in the US, but not quite a nation-state, Florida is said to be joining a group of prominent governments that hold Bitcoin. According to the Florida Blockchain Business Association (FBBA), the Sunshine State is working toward implementation in 2025.
FBBA Chairman Samuel Arms acknowledged that pension funds already hold cryptocurrencies and commented on the importance of investing in BTC, even in small amounts.
To be clear, the state of Florida already invests in Bitcoin and crypto-related assets through its pension fund. […] Investing just 1% of your pension fund in Bitcoin would be $1.85 billion.
FBBA Chairman Samuel Arms
Florida will join fellow US state Pennsylvania in working on a Strategic Bitcoin Reserve Act.
Some cities are working to add a little Bitcoin magic to their portfolios. CNA recently reported that the city of Vancouver in Canada and the canton of Bern in Switzerland are preparing to stack the satellites.
Related: Czech Republic will exempt long-term Bitcoin holdings from capital gains tax starting in 2025
And even China may be looking to get in on the action. Binance founder and former CEO Changpeng “CZ” Chao believes there is a strong case for China to follow the US lead.
Speaking at the Bitcoin MENA conference in Abu Dhabi on Dec. 9, CZ said that because Bitcoin is “the only 'hard' asset,” it is “unavoidable” that China will eventually set up a reserve. No,” he said.
