US Government to Research Bitcoin Reserve Policy
The research arm of Galaxy Digital expects the US government not to buy any Bitcoin (BTC) in 2025 but retain its current stock of 183,850 BTC worth close to $17.36 billion.
Alex Thorn, head of research at Galaxy Research, said in a December 27 report: “The US government will not buy Bitcoin in 2025. However, there will be some movement at the departmental level to consider an expanded BTC reserve policy”. The fact that it’s considering the reserve policy suggests this is more about long-term positions rather than short-term market positioning.
Bitcoin Act 2024: A Game-Changer?
The proposed BTC Act 2024 by Senator Cynthia Lummis of Wyoming could be a game-changer in the US government’s approach toward BTC. If passed, the act would grant the government the power to purchase 200,000 BTC every year over a period of five years, amassing a reserve of 1 million BTC to be held for a minimum of 20 years. Such a daring move could place Bitcoin at the heart of the US Treasury’s approach.
Broader Global Perspectives
It’s not just about the US, however. Galaxy analyst “JW” believes up to five Nasdaq 100 companies and nation-states could join the party by adding BTC to their respective balance sheets or sovereign wealth funds by 2025.
The Japanese Prime Minister, Shigeru Ishiba, also acknowledged global interest but sounded uncertain. “It is difficult for the government to express its views”, Ishiba said, citing a lack of understanding about BTC reserve strategies by countries like the US.
At the same time, former Binance CEO Changpeng Zhao suggested that smaller countries could very well take the lead in the implementation of BTC reserves. At the Bitcoin MENA conference in Abu Dhabi, Zhao highlighted the gradual nature of this shift, saying strategic adoption could start with the smaller-scale nations.
Competitive Dynamics in Bitcoin Adoption
The shifting US government position might have implications for the global approach. JW believes that a more aggressive US position could result in a race to adopt Bitcoin among nations. “Competition among unaligned or adversarial nations will drive strategies to mine or acquire Bitcoin,” JW said.
As BTC continues to mature as an asset globally, nations and corporations alike will likely revisit their strategies. While the US is unlikely to buy BTC in 2025, its policy shifts may pave the way for broader adoption and competition in the cryptocurrency space.
