Will the world stand idly by if the United States creates a strategic bitcoin reserve?
State FOMO
The ambition displayed by Republican senators to buy one million bitcoins is already having effect in the four corners of the world. Morocco, one of the rare countries to have banned bitcoin, has just lifted the anathema.
On the other side of the Atlantic, Brazilian MPs have just introduced a bill similar to that of American Senator Cynthia Lummis which aims to create a strategic reserve of bitcoins.
MP Eros Biondini suggests allocating up to 5% of Brazil's foreign exchange reserves. That is, around $16 billion (171,000 BTC). Brazil's total foreign exchange reserves represent 330 billion dollars.
This pleasant, unexpected surprise should be compared with the declarations of the Brazilian president. Luiz Inácio Lula da Silva had in fact called for the emergence of an international currency alternative to the dollar during his first state visit to China.
“I ask myself every evening why all trade must be done in dollars”he launched from the headquarters of the New Development Bank of Shanghai, also called the BRICS Bank.
“Who decided that the dollar would be the international currency after the demise of the gold standard? Why can't we trade based on our own currencies? »he added.
The bill presents bitcoin as a “hedging against geopolitical risks”. This is a barely veiled reference to the freezing of Russian foreign exchange reserves… If the West did not hesitate to confiscate 300 billion euros from the world's leading nuclear power, no country is 'shelter.
Stateless, non-confiscable and existing in absolutely finite quantity, bitcoin has all the assets to become the new international reserve currency of which the BRICS dream.
When will China turn around? Our article on the subject: “Bitcoin – China’s back to the wall”.
Bitcoin, the ultimate foreign exchange reserve
Brazil could soon join a club that is still very exclusive, alongside El Salvador and Bhutan. El Salvador was the first to implement a bitcoin strategy. Its strategic reserve contains almost 6,000 BTC representing nearly $540 million.
The Kingdom of Bhutan also accumulates it thanks to its surplus hydraulic energy. Other governments display much larger reserves thanks to judicial seizures:
United States: 208,109 BTC
China: 190,000 BTC
United Kingdom: 61,245 BTC
Ukraine: 46,351 BTC
Bhutan: 12,218 BTC
Venezuela: 240 BTC
Note that Germany recently shot itself in the foot by selling off its 50,000 BTC at an average price of $57,900…
For more perspective, recall that the foreign exchange reserves held by all central banks are equivalent to 12,347 billion dollars. More than 6,600 billion dollars, but also 2,265 billion euros. The rest is held in yen, pounds, Swiss francs, Canadian dollars, yuan, etc. The dollar's share amounts to 55% of total official foreign exchange reserves. This is much less than in 2001, when it reached 71%.
The dollar's share would be even lower if gold reserves were added to the calculation. They represent more than 20% of the grand total. About 37,000 tons of gold worth $2.8 trillion.
This is all money that should end up sooner or later in the hands of bitcoin. In this scenario, the market capitalization of bitcoin would reach $17 trillion. A single bitcoin would then be worth $800,000.
Not to mention the reserves of individuals and businesses. The latter already hold nearly 800,000 bitcoins. Microstrategy takes the lion's share with 386,000 BTC in reserve.
As such, don’t miss our article: “Bitcoin on the verge of sucking up a $4,000 billion jackpot”
The United States leads the way
The whole world will follow if the US Congress ever votes in favor of a strategic bitcoin reserve. Senator Cynthia Lummis' bill plans to offload gold reserves to hoard at least one million BTC (~$95 billion).
“President Trump is gathering an army to fight for Bitcoin”declared the senator this Wednesday. Donald Trump promised at the Bitcoin conference in Nashville to keep “100% of the bitcoins the US government already owns or will acquire.”
From hostile, the American government will become benevolent. The proof is that around ten secretaries personally own them.
This is the case of Vice-President Vance or even the next Secretary of Commerce. Knowing that Howard Lutnik is the current CEO of the Cantor Fitzgerald bank which happens to be in close collaboration with the firm Tether (Stablecoin).
We must also mention the presence of Robert Kennedy. The one who will supervise Health does not hide having invested the majority of his fortune in bitcoin. He recently declared on X:
Bitcoin is the currency of freedom, a hedge against inflation for the American middle class, a cure for the downgrading of the dollar as an international reserve currency, and the path out of a ruinous national debt!;
Washington fully intends to take advantage of the appreciation of the only asset in the world that exists in absolutely finite quantity to clean up its finances. It's only a matter of time before the whole world realizes that bitcoin is a historic technological breakthrough.
Don’t miss our article: “Bitcoin – The United States’ geopolitical masterstroke”.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
