'Many nations will use Bitcoin as reserves,' says CZ
From El Salvador to Bhutan, global governments hold 2.2% of total Bitcoin
Since the onset of the US election season, Bitcoin has been in the spotlight, riding a wave of notable gains in the midst of political crosswinds.
With Donald Trump seeing presidential victory, the cryptocurrency has been soaring to new heights—achieving records every day and seeing an all-time-high of more than $93,000 at the time of writing.
While retail investors have largely benefited from Bitcoin's meteoric rise, its influence stretches far beyond individual and institutional traders—reaching even national reserves.
According to CoinGecko, global governments already account for 2.2%—or 471,380.6 BTC—of Bitcoin's total supply as of July 29, 2024. Governments have been boosting their holdings by seizing the assets, receiving them through donations, or purchasing them actively.
This alone is already notable. But former Binance CEO Changpeng “CZ” Zhao boldly believes that more countries will turn to Bitcoin as a national resource, stored in reserve vaults alongside gold and other currencies.
Many nations will use bitcoin as reserves, and other crypto currencies too.https://t.co/d9ZbXYpstq
— CZ 🔶 BNB (@cz_binance) November 12, 2024
The US government currently has the highest Bitcoin holdings—with 213,246 BTC under their management. After the US is China, with 190,000 BTC holdings, as reported by CoinGecko.
Back in the largest Bitcoin conference in July, Trump shared his plans to turn the US into the planet's crypto capital. He also relayed his ambitions to launch a Bitcoin strategic reserve with the US government's current holdings.
Senator Cynthia Lummis also proposed a national Bitcoin reserve, and with Trump’s secure second term, she believed that the project may pass within 100 days of the onset of Trump's term.
Lummis said on X, “It is a game changer for the solvency of our nation”, urging the nation to "pass the Bitcoin Act!”
I believe we can get this done with bipartisan support in the first 100 days IF we have the support of the people.
— Cynthia Lummis 🦬 (@CynthiaMLummis)
It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act! https://t.co/gPIGaUtiQZ
While the US holds these ambitious plans for a strategic Bitcoin reserve, this move in itself is not unique. Other countries have already been accumulating holdings and seeing incredible profit from them.
El Salvador—which is known to be notably pro-BTC—is among these notable names. In fact, with the recent Bitcoin wave, the country has seen the value of its stash rise to over $500 million.
JUST IN: 🇸🇻 El Salvador now owns over $500 million worth of #Bitcoin 🤯
— Bitcoin Magazine (@BitcoinMagazine) November 12, 2024
Bitcoin country is winning 🙌 pic.twitter.com/NrfnnZ14PH
As El Salvador was the first country to accept Bitcoin as a legal tender, its incredible pro-BTC stance comes as no surprise.
According to data from its Bitcoin Office, the country holds 5,932.77 BTC. With Bitcoin priced at $90,000 at the time of writing, their holdings are equivalent to around $533.94 million.
Earlier this year, the country's president, Nayib Bukele, said he has no plans to sell the country's holdings.
While El Salvador's reserves are truly impressive, its holdings are superseded by another contender: the Royal Government of Bhutan. The latter's reserves have reached a value of more than $1 billion—making the country a key player in the crypto landscape.
The Royal Government of Bhutan now owns $1 Billion in Bitcoin. pic.twitter.com/y8MQdCqMDy
— Arkham (@ArkhamIntel) November 11, 2024
According to Arkham Intel, the Royal Government of Bhutan holds 12,568 BTC. At the time of writing, these holdings are equivalent to $1.131 billion. Yahoo! Finance reported that the country's holdings account for more than one-third of its GDP.
Having rich hydroelectric power, Bhutan turned to mining—which is the process of generating new BTCs and securing the network—when it started developing its Bitcoin reserves a couple of years ago, as reported by Cryptoslate.
The growth of its holdings showcases a visionary strategy that other similar economies may soon echo.
With these success stories, it may just be a matter of time for more countries to follow suit. As exhibited in El Salvador and other countries that are Bitcoin-friendly, state-level crypto adoption may boost BTC's long-term credibility and stability. Governments that hold large amounts of cryptocurrencies may also significantly affect prices.
As crypto adoption continues to surge, governments will likely sharpen the regulatory landscape of these assets. With this, the crypto world may eventually see fewer scams, more active crackdowns, and a safer investing environment.
With the further integration of digital assets into the wider financial ecosystem, government-held cryptocurrencies may crucially shape the landscape's regulatory and adoption direction—ultimately upholding a balance between security and growth in a rapidly advancing economy.
