Bitcoin is emerging as a strong competitor to traditional assets like gold, sparking global debates about its potential role as a national reserve asset.
The conversation gained traction after President-elect Donald Trump called Bitcoin the “core of financial independence” for the United States.
States Look to Bitcoin as a Financial Lifeline
According to Dennis Porter, CEO and co-founder of the Satoshi Action Fund (SAC), at least 13 of the 50 US states are actively working on legislation to create Bitcoin reserves.
“I can confirm that at least 13 states are working on ‘Strategic Bitcoin Reserve’ legislation. January is going to be a record-breaking month for Bitcoin policy,” Porter tweeted on January 3.
In November, Senator Cynthia Lummis proposed establishing a Bitcoin reserve for the US. In a separate statement, Porter mentioned that 2025 would see a “tidal wave” of Bitcoin-related policies.
“Another state senator reached out to us, expressing interest in creating legislation for a ‘Strategic Bitcoin Reserve.’ A tidal wave of Bitcoin policy is coming, and SatoshiActFund is at the forefront,” Porter noted.
Growing Support Among Lawmakers
The idea of Bitcoin reserves has already gained significant support among US lawmakers. In December, Ohio’s Derric Merin argued that as the US dollar faces devaluation, Bitcoin offers a way to diversify state portfolios and protect public funds. Merin introduced a bill to establish a Bitcoin reserve in Ohio’s treasury.
Similarly, a representative from Texas introduced a BTC reserve bill in December. Instead of directly purchasing Bitcoin, the bill would allow Texas to accept taxes, fees, and donations in Bitcoin.
Similar proposals have been introduced in Pennsylvania and Florida. The Pennsylvania Bitcoin Act, for example, suggests allocating up to 10% of the state’s $7 billion treasury to Bitcoin investments.
A Global Trend
Asset management firm VanEck has predicted that adopting a Bitcoin reserve could reduce the US national debt by 36% by 2025.
The concept of Bitcoin reserves is also gaining traction internationally. Countries like Japan, Switzerland, and Russia are exploring ways to establish BTC reserves. In Vancouver, for instance, city authorities have already approved a plan to include Bitcoin in their financial reserves.
Interestingly, governments aren’t the only entities racing to acquire Bitcoin. Companies such as MicroStrategy, Tesla, Marathon Digital, and others are also amassing significant amounts of the cryptocurrency.
As discussions about Bitcoin reserves continue to grow both domestically and internationally, it is becoming clear that Bitcoin is playing an increasingly prominent role in shaping the future of global finance.
