Nations States Turn To Bitcoin As A Strategic Reserve Asset

Governments and central banks are discussing whether bitcoin should form part of national reserves. In the US, President-elect Donald Trump outlined plans for a national bitcoin reserve, and Senator Cynthia Lummis has argued that bitcoin’s finite supply makes it suitable for national reserves. A Swiss public referendum could make Switzerland the first country to hold bitcoin officially as a reserve asset.

Elsewhere, former German Finance Minister Christian Lindner suggested that the European Central Bank and the Bundesbank consider bitcoin, Hong Kong legislator Wu Jiezhuang has called for it to be added to the city’s reserves, and Russian Finance Minister Anton Siluanov said Russia has begun using bitcoin and other digital currencies for international transactions. Brazil’s RESBit proposal would allocate some of its international reserves to bitcoin, and Polish presidential candidate Sławomir Mentzen has proposed a strategic bitcoin reserve. The piece compares the debate with earlier competition over gold and oil.