Bitcoin has surged past $103,000 again finally, sitting less than 1% under its all-time high of $103,679, causing expectations to run wild that the apex crypto might be about to break it. This comes as governments, namely the United States, Japan, and Russia, are racing to integrate Bitcoin into their national financial arsenals, raising the stakes in the global race for crypto dominance. America sets the pace US President-elect Donald Trump has announced plans to create a national Bitcoin reserve with an ambitious goal: acquire one million Bitcoin within five years. This strategy wants to address the ballooning $35 trillion national debt and reposition America as a leader in the digital economy. To kickstart this plan, the US already has a decent head start. Federal agencies hold roughly 200,000 Bitcoin, confiscated from criminal activities and currently valued at $20 billion. Senator Cynthia Lummis is leading the legislative push for Bitcoin reserves, introducing the BITCOIN Act to Congress. This legislation not only backs Trump’s vision but also positions Bitcoin as a long-term strategic asset. Lummis sees Bitcoin as a hedge against traditional financial instability and a necessary tool for economic resilience. Japan eyes Bitcoin as a financial lifeline Japan is crafting its own Bitcoin narrative. Satoshi Hamada, a crypto-loving lawmaker, has called for converting a portion of Japan’s foreign reserves into Bitcoin. His argument is that Bitcoin is an opportunity to break free from the constraints of traditional currencies like the US dollar and yen. Hamada believes this could boost Japan’s financial independence and drive innovation in blockchain technology. But there’s a twist. The proposal doesn’t come with widespread political backing. His party holds just two seats in parliament, but his ideas are gaining traction among lawmakers keen to modernize Japan’s financial strategy. The government, though, hasn’t officially endorsed anything yet. Russia uses Bitcoin to fight sanctions Meanwhile, Russia, under the weight of crippling Western sanctions, sees Bitcoin as a lifeline. Anton Tkachev, a lawmaker, proposed creating a national Bitcoin reserve to shield the country’s economy from external pressures. He explained that Bitcoin offers an alternative to traditional currencies, which have become geopolitical weapons in the hands of Western countries like America and the UK. The Russian government is slowly warming up to the idea. Recent changes in crypto regulation include tax exemptions on Bitcoin transactions and the legalization of mining activities in certain regions. Also, as we reported, president Vlad Putin signed a law declaring crypto as “legal property” just a few weeks ago. All of these are laying the groundwork for a more Bitcoin-friendly economy. Tkachev sees Bitcoin as a hedge against inflation and a tool for maintaining financial stability in the face of geopolitical uncertainty. The US dollar, long the global reserve currency, is now facing a decentralized challenger. Some analysts are calling this a “crypto cold war.” The risks of adopting Bitcoin as a reserve asset For all the hype though, Bitcoin isn’t a magic bullet. Its notorious price volatility makes it a risky choice for economies. Over the past year, Bitcoin’s price has fluctuated by as much as 65%, far higher than traditional reserve assets like gold or USD. A sudden drop could destabilize a country’s economy terribly, turning Bitcoin from an asset into a liability and undoing years of tireless work to prove itself. There’s also the regulatory nightmare. Establishing a national Bitcoin reserve requires a complete overhaul of existing financial policies. There is no way that would be easy. Governments will need to get through many complex legal frameworks, address concerns about money laundering, and earn public trust in what is still a relatively new and misunderstood asset class. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
