Bitcoin News Today: U.S. Vaults Bitcoin as Strategic Reserve to Hedge Fiat Devaluation

Central banks are increasingly considering Bitcoin as a reserve asset, with the United States leading the charge through the establishment of a Strategic Bitcoin Reserve. On March 6, 2025, President Donald Trump issued an executive order directing the U.S. Treasury to create a dedicated reserve for Bitcoin and other digital assets. The order mandates that all government-held Bitcoin, primarily acquired through criminal or civil asset forfeiture proceedings, be consolidated into a centralized reserve. This initiative aims to treat Bitcoin as a strategic store of value, akin to gold, while ensuring its management aligns with national financial objectives *Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile*^[1]. The Treasury is also tasked with developing strategies to acquire additional Bitcoin in a budget-neutral manner, reflecting a shift toward recognizing digital assets as part of sovereign wealth management.

The U.S. proposal gained legislative momentum in September 2025 when the House Appropriations Committee advanced H.R. 5166, a bill requiring the Treasury to submit a 90-day feasibility report on managing the Strategic Bitcoin Reserve. The legislation emphasizes accountability, custody, and cybersecurity protocols for holding digital assets. It also mandates a detailed plan for secure storage, addressing concerns about third-party custodians and legal frameworks for asset transfers. The bill's sponsor, Rep. David Joyce, framed the initiative as a step toward fiscal responsibility and national security, underscoring the need for centralized oversight of approximately $22.4 billion in seized Bitcoin *House Bill Moves Trump’s Strategic Bitcoin Reserve a Step Closer*^[2].

Other nations are following suit. El Salvador, which has been a vocal advocate for Bitcoin adoption since 2021, holds 6,340 BTC valued at $783.39 million as of mid-2025. The country has implemented a daily Bitcoin purchase strategy and split its holdings across 15 wallets to mitigate risks from quantum computing threats. Similarly, the United Arab Emirates (UAE) has amassed 6,422 BTC through government-backed mining operations, with Citadel Mining playing a central role in its accumulation efforts. These moves highlight a growing trend among emerging economies to diversify reserves with digital assets, leveraging their perceived scarcity and resistance to inflation .

Global government holdings of Bitcoin now exceed 515,881 BTC, with the U.S. reportedly holding 198,012 BTC (though recent data disputes this figure). The UAE and El Salvador rank among the top holders, while North Korea's Lazarus Group has emerged as an unexpected participant, holding 803 BTC after a series of cyberattacks. China, once a major holder, appears to have liquidated its 190,000 BTC stash from the 2019 PlusToken scam, according to on-chain analysis . These developments underscore the fragmented yet expanding role of Bitcoin in sovereign portfolios, driven by strategic, economic, and technological factors.

Analysts attribute the growing interest in Bitcoin to its fixed supply of 21 million coins, which mirrors the scarcity of gold. The U.S. executive order explicitly cites the strategic advantage of securing a reserve in an asset with inherent scarcity, positioning it as a hedge against fiat currency devaluation. However, challenges remain, including legal ambiguities, custody risks, and the volatility of digital assets. The Treasury's upcoming feasibility report will need to address these issues, particularly as global regulators continue to debate the role of cryptocurrencies in central banking *Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile*^[1].

The shift toward Bitcoin as a reserve asset reflects broader macroeconomic trends, including inflationary pressures and geopolitical instability. While gold has outperformed Bitcoin in 2025 due to its established safe-haven status, the latter's appeal as a decentralized store of value is gaining traction among governments seeking to hedge against currency risks. The U.S. and UAE initiatives signal a potential normalization of Bitcoin in official financial systems, though widespread adoption will depend on resolving regulatory and technical hurdles *House Bill Moves Trump’s Strategic Bitcoin Reserve a Step Closer*^[2].