The research team at Galaxy Digital has concluded that in 2025, the US government will hold onto its US Government’s Bitcoin rather than purchase any more. Chief of Galaxy Research, Alex Thorn said the US government will not purchase Bitcoin in 2025. While talks on a Bitcoin reserve policy continue, the US government will instead build a stockpile using Bitcoin BTC$94,984.
US Bitcoin Reserves and Global Adoption
Thorn stated that several departments and agencies will examine an extended Bitcoin reserve policy. The United States government is believed to hold 183,850 Bitcoins (BTC) at many known addresses, worth around $17.36 billion (Spot on Chain). If Senator Cynthia Lummis’s US Government’s Bitcoin Act of 2024 were to become law, the United States government would be able to purchase 200,000 BTC per year for five years, for a total of 1 million Bitcoins, which it would then be able to store for a minimum of 20 years, making it a reserve asset.
Another Galaxy analyst, “JW,” has speculated that five nations and five Nasdaq 100 businesses would include Bitcoin in their sovereign wealth funds or balance sheets. Competition among nation-states, particularly unaligned nations, those with large sovereign wealth funds, or even those adversarial to the United States, will drive the adoption of strategies to mine or otherwise acquire Bitcoin. This suggests that nation-states may be more motivated to mine or acquire Bitcoin if the United States takes a stronger stance on Bitcoin adoption.
Japan’s Ishiba on Global Bitcoin Reserves
Prime Minister Shigeru Ishiba of Japan stated on December 26 that he is not well-informed about the movements involving the adoption of Bitcoin reserves by countries such as the United States and others. The government finds it difficult to express its views, Ishiba remarked.
Changpeng “CZ” Zhao, the former CEO of Binance, expects China to join other nations in establishing a strategic Bitcoin reserve. According to Zhao, who spoke at the Bitcoin MENA conference in Abu Dhabi on December 9, Smaller countries would probably be the first to embrace a Bitcoin reserve, though the transition may be gradual.
Final Thoughts
Continuing talks over reserves suggest that in 2025, the US government would put a premium on holding Bitcoin rather than buying more of it. The bigger picture is changing, but laws like Senator Lummis’s Bitcoin Act 2024 could lead to substantial US Government’s reserves. Perhaps other governments will take the lead in using Bitcoin as a reserve asset; this is especially true of smaller nations and those with substantial sovereign wealth funds. If other countries, such as China, adopt similar policies, this change can potentially increase competition. The United States and other governments are carefully planning their stances in light of the growing number of nations that are considering Bitcoin’s possibilities. This might lead to a revolutionary shift in global banking towards decentralized reserves.
FAQs
How much Bitcoin could the US government purchase under the Bitcoin Act of 2024?
If Senator Cynthia Lummis's Bitcoin Act of 2024 becomes law, the US government could purchase 200,000 BTC per year for five years, totaling 1 million Bitcoins.
What role does competition among nations play in Bitcoin adoption?
Competition among nations, especially those with large sovereign wealth funds or adversarial stances toward the US, is expected to drive the adoption of Bitcoin reserves. This includes mining or acquiring Bitcoin to enhance economic sovereignty.
How is Japan's government responding to Bitcoin reserves?
Japan's Prime Minister, Shigeru Ishiba, has stated that his government is not well-informed about global Bitcoin reserve movements and finds expressing its stance on the issue challenging.
What is Changpeng Zhao’s (CZ) view on Bitcoin reserves?
Changpeng Zhao, former CEO of Binance, expects that smaller countries will be the first to adopt Bitcoin reserves, with larger nations like China following gradually
