Nation-state adoption of bitcoin is rapidly advancing, as detailed in a recent report examining how governments worldwide are gaining exposure to the asset through mining, reserves, legislation, and pension and wealth funds.
Growing government bitcoin holdings
The report highlights that, historically, sovereign bitcoin reserves were primarily amassed through seizures linked to criminal investigations.
However, a pivotal shift has occurred:
“Countries have explicitly stated, or implied through their inaction, that they don’t intend to sell their accumulated bitcoin.”
This change is most evident in the United States, where an executive order signed by former President Donald Trump set a policy of retaining, not selling, government-held bitcoin.
Additionally, proposed legislation would require the U.S. to purchase one million bitcoins as a strategic reserve, while states like Texas, Arizona, and New Hampshire have enacted their own strategic bitcoin reserve laws.
Innovative approaches to national exposure
Other nations are employing unique strategies, such as using sovereign wealth funds or government-affiliated pension funds to invest directly or indirectly in bitcoin.
Some countries are leveraging excess energy resources to mine bitcoin, often through profit-sharing arrangements.
The report notes:
“Sixteen nations have now proposed or enacted legislation for SBRs, and several international provinces and U.S. municipalities now accept tax payments in bitcoin.”
Strategic advantages and new financial instruments
Bitcoin’s role is evolving beyond a speculative asset. The report emphasizes its potential as a complement to gold, stating:
“Bitcoin fulfills many of the same monetary functions, and arguably improves upon them… its digital portability—allowing transfers anywhere in the world within about ten minutes—further enhances this value.”
Governments are also exploring bitcoin-backed sovereign bonds and new trade settlement methods. Early adopters may benefit from bitcoin-driven business ecosystems and reduced borrowing costs.
A global trend with lasting implications
Research finds that 27 countries currently have some form of bitcoin exposure, while 13 more are pursuing legislative measures. The report concludes:
“Bitcoin has emerged as a new macroeconomic asset, the first of its kind in more than a century. Now that the most powerful and influential countries… are engaging with bitcoin, a game-theoretic race for adoption has begun.”
For a comprehensive list of countries holding bitcoin, see this tracker.
