Bitcoin Treasure Announcements: A Fad or Real Need?

In July 2024, US Senator Cynthia Lummis introduced an initiative to establish a national treasury backed by Bitcoin. The proposal, sponsored by Donald Trump, became one of the main promises of his campaign to be elected president.

Officials from various countries have urged their nations not to be left behind and to follow the course set by Trump, a move that has been celebrated by members of the Bitcoin community and industry entrepreneurs, who believe it is marking the beginning of a significant change in global finance. However, others maintain that the promises of the new president of the United States are claims that he will not be able to fulfill.

Having a treasury in Bitcoin allows a State to manage its reserves of value more strategically. The main advantage of BTC lies in its limited supply, with a maximum of 21 million units. This makes it less vulnerable to the inflationary effects that affect fiat currencies – they can be issued without restrictions.

While market volatility represents a risk, Bitcoin also presents significant long-term appreciation opportunities. A clear example is in El Salvador, whose BTC treasury has experienced notable growth, demonstrating the cryptocurrency’s potential to generate returns as its global adoption increases.

This global trend of accumulating Bitcoin in national reserves raises the question of whether this is a passing trend or a vital financial strategy for the future. Some argue that it is a necessity in the face of inflation in fiat currencies and the search for safe assets of limited value. Others see it as a fad that reflects the current enthusiasm for cryptocurrencies, without a deep understanding of its long-term economic implications. If the latter is true, another question arises: how many of these announcements will remain in limbo, without significant progress?

So far, several countries have spoken out on legislative proposals to create Bitcoin treasuries. We will review which have emerged as solid proposals.

Stronger projects

Proposal in Brazil: The initiative proposes the creation of a Bitcoin treasury called RESBit, through a bill presented by congressman Eros Biondini. Based on it, Up to 5% of the country’s international reserves would be allocated to the gradual acquisition of BTC. The project was presented on November 25.

A project for Argentina: In this case, the proposal comes from deputy Martín Yeza, who recently announced a bill aimed at the Central Bank not only acquiring and safeguarding Bitcoin, but also promoting its mining. The initiative proposes that a part of the national reserves be maintained in the digital currency, marking a significant step towards the integration of digital assets in the economy of the southern country.

A plan in Chile: There are legislators who are also promoting the creation of a Bitcoin Strategic Reserve, project promoted by Andrés Villagrán, a cryptocurrency miner with international experience. Andrés has worked to educate Chilean officials about the benefits of BTC and has presented the proposal to members of the government, with plans to resume meetings this year, both with the Ministry of Finance and with multiple deputies and senators.

A goal for Switzerland: In that Central European country, a modification to its Federal Constitution is being considered to allow the country’s National Bank to include Bitcoin in its national reserves. The initiative seeks to modernize the nation’s reserve portfolio, currently made up of fiat currencies and more than 1,000 tons of gold, incorporating BTC as a strategic asset. The proposal has already begun its signature collection phase and must achieve the support of 100,000 people before June 2025.. If successful, Switzerland could position itself as a leader in global Bitcoin adoption.

A commitment for the United States: Donald Trump promised to establish a BTC reserve should he win the presidency. Upon his arrival at the White House on January 20, it is estimated that he will guide the creation of a treasury based on digital currency, starting with an acquisition of approximately 200,000 BTC. The process to implement this treasury could follow two paths: legislative, with the bill already presented by Senator Lummis, or through an Executive Order, which would allow progress without the need to go through Congress, although this could generate more legal and political challenges. It is estimated that the project will begin to be debated in 2025.

Proposals that have barely seen the light and recent announcements

Recently, Aleš Michl, Governor of the National Bank of the Czech Republic, took advantage of an interview to declare that, although the institution currently has no plans to add large amounts of Bitcoin to its reserves, Yes, they have considered acquiring “some BTC” as part of their diversification strategy. Furthermore, Michl stated that he was open to continuing to debate the issue.

Russia also has a say in this list, since legislator Anton Tkachev proposed to the Minister of Finance, Anton Siluanov, the creation of a Bitcoin treasury to improve the country’s financial stability, inspired by the traditional reserve model. Tkachev highlighted that fiat currencies such as the yuan, dollar and euro are vulnerable to volatility, sanctions and inflation. This initiative is framed in a context in which Russia, under the leadership of Vladimir Putin, has expressed its support for the development of Bitcoin, with the president publicly declaring that the asset will continue to evolve without being able to be banned.

In turn, Thailand has advanced the discussion on adopting Bitcoin as a strategic reserve, with a proposal presented by former Prime Minister Thaksin Shinawatra during an event organized by the Pheu Thai party. During the meeting, Thaksin presented the idea of ​​adopting Bitcoin as a key asset to strengthen the Thai economy. The initiative is supported by current Prime Minister Paetongtarn Shinawatra.

Thanks to Dennis Porter – CEO of the Satoshi Action Fund (SAF) – it was revealed that Sławomir Mentzen, Polish presidential candidate and leader of the Konfederacja party, has promised to implement the SAF model law to designate Bitcoin as a strategic reserve asset in Poland. The SAF model law has already been officially released, allowing it to be used by governments and states interested in creating their own Bitcoin treasuries.

It is worth noting that the French deputy Sarah Knafo, member of the European Parliament, expressed its rejection of the digital euro proposal (CBDC) and the regulatory approach of the European Central Bank (ECB) towards cryptocurrencies. In his speech, Knafo stressed the importance of embracing the decentralized nature of Bitcoin as a way to protect the region from inflation and poor economic decisions by countries. In addition, he applauded El Salvador’s success and criticized the MiCA Law. “No to the digital euro, yes to a strategic bitcoin reserve,” Knafo wrote in a post on X.

The viability of these projects

Recent proposals in various countries mark significant progress towards modernizing economies and strengthening national reserves. However, beyond good intentions, it is essential to adopt a comprehensive and well-structured approach to turn these initiatives into concrete realities. Nations that truly wish to take this step must recognize that A speech in favor of cryptocurrencies or the mere presentation of bills that promote their inclusion in reserves is not enough. This process requires a thorough review of existing regulatory frameworks, the building of strategic alliances, and a deep understanding of the volatility inherent in cryptoassets.

Facing these challenges is not an easy task, but the projects that manage to be implemented will be the ones that best address tensions with actors in the traditional financial systemwho usually show skepticism or resistance towards the incorporation of crypto assets as national reserves. For the proposals to materialize in results, legislators must promote constant dialogue between all parties involved: financial authorities, technology companies and citizens, in addition to promoting education and training on the use and benefits of cryptocurrencies.

In the coming years it will be necessary to monitor how these initiatives evolve and whether they manage to overcome government barriers. Collaboration will be essential to ensure that pro-cryptocurrency measures contribute to economic diversification and financial stability in the long term.