Global Power Struggle Unfolds Over Bitcoin’s Role in National Reserves

The U.S. Congress is advancing a bill that would direct the Treasury Department to explore the feasibility of establishing a strategic Bitcoin reserve and a broader digital asset stockpile. Introduced by Representative David P. Joyce, the House bill includes two key sections requiring the Treasury to submit a report on the technical and legal considerations of maintaining a reserve within 90 days of enactment. The report must cover custody arrangements, cybersecurity protections, interagency procedures for asset transfers, and the representation of these assets on the federal government’s balance sheet [1]. The legislation also mandates the Treasury to outline potential implementation hurdles and assess the impact on the Forfeiture Fund, which currently manages seized assets [3].

The bill builds on an executive order signed by President Donald Trump in March, which proposed the creation of a strategic Bitcoin reserve and a digital asset stockpile using confiscated crypto. U.S. Treasury Secretary Scott Bessent has emphasized the agency’s ongoing efforts to explore budget-neutral methods to strengthen the Bitcoin reserve [1]. The House Appropriations Committee advanced the bill on Friday, with Joyce expressing appreciation for its progress on X, highlighting the legislation’s focus on fiscal responsibility, technology adoption, and national security [1].

The U.S. is not the only nation exploring the concept of a strategic Bitcoin reserve. Kazakhstan’s President Kassym-Jomart Tokayev announced plans to establish a state fund for digital assets to accumulate a strategic cryptocurrency reserve, under the oversight of the National Bank of Kazakhstan. The initiative is part of broader efforts to accelerate the development of a digital asset ecosystem and enhance the country's regulatory framework for cryptocurrencies [4]. Similarly, the Philippines is considering the creation of a strategic reserve holding 10,000 Bitcoin, which could make it the first country in Southeast Asia to adopt Bitcoin as a formal reserve asset [1]. These global developments underscore a growing interest in integrating cryptocurrencies into national economic strategies.

El Salvador, one of the few countries to adopt Bitcoin as legal tender, has taken a proactive step in securing its national Bitcoin reserve by redistributing its holdings across multiple new addresses. This move aims to mitigate potential risks from quantum computing threats, which could exploit cryptographic vulnerabilities. By limiting the amount of Bitcoin held in each address—capping it at 500 BTC—the country is reducing exposure to potential breaches and creating a more decentralized and secure structure [2]. The strategy not only enhances cybersecurity but also serves as a model for other nations considering similar reserve mechanisms.

Recent academic analysis further evaluates the potential role of Bitcoin in central bank reserve portfolios. A paper from September 2025 examines Bitcoin's viability as a reserve asset, comparing its stability, liquidity, and risk characteristics to traditional assets like gold and U.S. Treasury bonds. The study finds that while Bitcoin lacks the stability and liquidity of established reserves, it can function as a diversification tool in central bank portfolios, particularly during periods of economic stress. The analysis suggests that small allocations of Bitcoin could reduce portfolio risk, although it cautions that Bitcoin does not meet all the criteria required for a central bank reserve asset [5].

The legislative and strategic initiatives in the U.S., Kazakhstan, and other countries reflect a broader trend of governments exploring the integration of digital assets into national financial frameworks. These efforts are driven by a combination of technological advancements, economic diversification goals, and the potential for Bitcoin to serve as a hedge against traditional market volatility. As the U.S. Treasury prepares its report under the new bill, the outcome of these global developments will likely influence the trajectory of digital asset adoption in the public sector.

Source:

[1] US Lawmakers Seek Treasury Report Ironing Out Details of Bitcoin Reserve (https://cointelegraph.com/news/us-lawmakers-seek-treasury-report-ironing-out-details-bitcoin-reserve)

[2] El Salvador Redistributes National Bitcoin Reserve Across Multiple Addresses (https://finance.yahoo.com/news/el-salvador-redistributes-national-bitcoin-163014801.html)

[3] US Considers Formal Bitcoin Reserve Amid Legislative Urgency (https://cryptoslate.com/us-treasury-faces-a-90-day-deadline-to-map-out-strategic-bitcoin-reserve/)

[4] Kazakhstan to Establish State Cryptocurrency Reserve (https://forklog.com/en/kazakhstan-to-establish-state-cryptocurrency-reserve/)

[5] The Viability of Bitcoin as a Central Bank Reserve Asset (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5442954)