Bitcoin News Today: Indonesia Explores Bitcoin as Reserve Asset After Tax Hike

The Indonesian government, which last week announced a tax increase on cryptocurrency investors and miners, has now signaled a surprising policy shift by exploring the use of Bitcoin as a reserve asset. According to the Bitcoin Indonesia community, government officials—most recently the Vice President’s office—have engaged in discussions with the country’s largest Bitcoin community to assess how the digital asset might contribute to long-term economic growth. The talks reportedly included the idea of using Bitcoin mining as part of a national reserve strategy [1]. This development marks a notable pivot in Indonesia’s approach to cryptocurrency, following a regulatory move expected to discourage investment [1].

Despite the tax hike, the Indonesian government appears to be considering a more strategic, institutional use of Bitcoin, raising questions about whether the country is attempting to balance tighter oversight with economic experimentation. The government currently allows cryptocurrency trading but prohibits its use in payments [1]. This contrast between regulatory action and potential adoption as a reserve asset underscores the growing, albeit inconsistent, global interest in Bitcoin’s role in central economic planning.

Indonesia’s move is not occurring in isolation. The United States has reportedly amassed nearly 8 million BTC—approximately 40% of the total supply—according to Fred Krueger’s analysis [1]. These large-scale holdings by governments are reshaping perceptions of Bitcoin from speculative asset to potential macroeconomic tool. At the same time, Bitcoin ETFs experienced a $404 million net outflow last week, ending a multi-week streak of inflows [4], suggesting that investor sentiment may be shifting amid broader uncertainty.

Bitcoin’s price resilience remains evident despite the week’s turbulence. The asset closed above $114,000, having briefly dipped below $112,000 earlier in the week [2]. The market’s continued stability reflects Bitcoin’s evolving status as a store of value and a hedge against fiat instability. This is further supported by the Federal Reserve’s decision to keep interest rates unchanged and ongoing global discussions on the role of central banks in regulating digital assets [3].

Meanwhile, major financial institutions are increasingly validating Bitcoin’s legitimacy. MicroStrategy (MSTR) reported Q2 operating earnings of $114 billion and announced plans to raise $2.4 billion to purchase an additional 21,000 BTC [2]. This aligns with a broader trend as Deloitte’s Q2 survey found that 99% of CFOs at billion-dollar companies expect to use cryptocurrency in the long term [2]. The institutional embrace of digital assets is reinforcing their credibility in traditional finance.

The broader crypto market saw mixed results. Ethereum’s on-chain volume reached $238 billion in July—the highest since December 2021—while Bitcoin’s dominance returned to 61% [2]. However, the total market cap dipped to $3.7 trillion as liquidity was pulled from leveraged positions and speculative altcoins [2]. The Fear and Greed Index has since returned to neutral, indicating a cautious stance among investors awaiting further clarity on key economic and regulatory signals [2].

Source:

[1] Surprise Bitcoin (BTC) Move from the Country That Raised Cryptocurrency Taxes Last Week - https://en.bitcoinsistemi.com/surprise-bitcoin-btc-move-from-the-country-that-raised-cryptocurrency-taxes-last-week/

[2] Weekly Market Update - https://hub.easycrypto.com/news/weekly-market-update-one-rule-for-thee

[3] Crypto: The Question of Bitcoin, Digital Dollars, and the Future of Money - https://www.cfr.org/backgrounder/crypto-question-bitcoin-digital-dollars-and-future-money

[4] Bitcoin ETF Outflows Continue - https://sherwood.news/crypto/bitcoin-etf-outflows-continue-as-bitcoin-slumps/