• In 2025 Bitcoin has many different ways of becoming a worldwide asset that can be similar to gold but for this specific situation we will focus on the multiple states and countries that are proposing on using Bitcoin as a Treasury Reserve Asset.
    • Its characteristics like having a fixed supply, hedging against currency devaluation, the ability to be traded worldwide with possible price appreciation, reducing national debt, and diversification of portfolios with the digital gold exposure or using as collateral.
    • Also, as the bitcoin blockchain itself continues to evolve with things like the lightning network (a layer built on top of the bitcoin network).
  • Bitcoin’s role as a treasury reserve asset represents a paradigm shift in how governments and corporations manage financial stability and growth in an increasingly digital world.
    • Its adoption will likely depend on regulatory clarity, technological advancements in custody solutions, and broader acceptance of cryptocurrencies globally.
    • Some of the governments that have already established national Bitcoin Reserves are El Salvador, Bhutan.
    • The United States, Brazil, Russia have treasury proposals as a possibility.
    • Now for some states that are exploring the same possibility are New Hampshire, Pennsylvania, Texas, Alabama, Florida, and now North Dakota.
  • Bitcoin Act (U.S.): Senator Cynthia Lummis introduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, which proposes creating a U.S. strategic Bitcoin reserve.
    • The legislation includes acquiring 1 million BTC over five years and establishing secure Bitcoin vaults managed by the Treasury.
  • Trump Administration Proposal: President-elect Donald Trump pledged to create a national Bitcoin stockpile using seized Bitcoin assets and additional acquisitions via the Treasury’s Exchange Stabilization Fund (ESF).
    • This initiative aims to position Bitcoin as a strategic reserve alongside gold.
  • Pennsylvania:
    • Representatives Mike Cabell and Aaron Kaufer introduced HB 2664, the Strategic Bitcoin Reserve Act, which would allow the state treasurer to allocate up to 10% of Pennsylvania’s General Fund into Bitcoin and crypto exchange-traded products (ETPs).
    • This could amount to a $970 million investment, aimed at hedging against inflation and diversifying state reserves.