Governments Hoard Bitcoin: From Washington’s Bills to the UK’s Quiet Reserves

A new trend is emerging across the global financial system: governments are starting to hold Bitcoin (BTC) as part of their national reserves. What began as an experiment in El Salvador is now becoming a broader global movement, with countries like the United States, United Kingdom, Germany, and Bhutan joining in each for their own reasons. This growing interest could reshape how the world views Bitcoin, turning it from a speculative asset into a recognized tool for financial stability.

At its core, this movement reflects a simple idea, Bitcoin can act as a hedge against inflation and government debt. As national debts rise and traditional currencies lose value, several governments are looking to Bitcoin’s limited supply as a form of protection. Bitcoin’s total supply is capped at 21 million coins, making it a scarce digital resource similar to gold in earlier centuries.

The United States Leads with a Bold Plan

In the United States, Senator Cynthia Lummis has introduced the BITCOIN Act, a proposal for the U.S. government to acquire 1 million BTC over the next five years. The plan suggests that the government use seized or confiscated crypto assets to build this reserve, making it “budget neutral,” meaning it would not require new taxpayer funding.

Supporters believe this would help protect the U.S. economy from the weakening of the dollar caused by its $37 trillion national debt. The idea also aligns with discussions from earlier years when former President Trump suggested creating a national Bitcoin reserve to strengthen the U.S. position in the digital economy.

El Salvador: The Pioneer of Bitcoin Adoption

El Salvador remains the pioneer in government-level Bitcoin adoption. Since 2021, the country has treated Bitcoin as legal tender, allowing it to be used for payments alongside the U.S. dollar. President Nayib Bukele continues to expand the country’s holdings, which now exceed 5,900 BTC worth around $600 million.

El Salvador is also exploring Bitcoin mining using renewable energy, especially from volcano-powered geothermal plants. This approach helps the country generate income while promoting green energy use.

Europe Joins the Game: The UK and Germany’s Different Paths

Across the Atlantic, the United Kingdom is taking a quieter but steady approach. Through the National Crime Agency, the government has accumulated more than 61,000 BTC, worth around $6.5 billion, mainly from criminal seizures. Although these holdings were not initially meant as investment assets, the government has chosen to hold much of this Bitcoin instead of selling it, likely recognizing its potential as a valuable reserve.

In contrast, Germany has been more active in managing its crypto holdings. In 2024, it sold nearly 50,000 BTC seized from illegal activities, earning about €3 billion for its national treasury. This move showed that even governments are beginning to view Bitcoin as an asset with real liquidity and market impact.

Further east, Bhutan has been quietly mining Bitcoin using hydropower energy, accumulating around 13,000 BTC. For Bhutan, Bitcoin mining represents a way to diversify its economy and generate income sustainably.

A Shift in Global Finance

This accumulation of Bitcoin by governments is part of a much larger shift in the global financial landscape. Many central banks are exploring Central Bank Digital Currencies (CBDCs) government-backed digital versions of national money. Some experts believe that future CBDCs could be backed by Bitcoin reserves, combining the stability of a national currency with the strength of blockchain-based assets.

According to recent research, over 130 countries are currently testing or developing CBDC systems, and about 93% of central bankers see cryptocurrencies as both a potential threat and opportunity for their economies.

 

Country	Approx. BTC Holdings	Value (USD)	Acquisition Method
United States	Proposed 1,000,000 (planned)	–	Legislative proposal (BITCOIN Act)
El Salvador	5,900	$600 million	Government purchase & mining
United Kingdom	61,000	$6.5 billion	Seized crypto assets
Germany	50,000 (sold)	€3 billion revenue	Seized assets sold
Bhutan	13,000	$1.3 billion	Renewable mining

 

The growing trend of governments holding Bitcoin could have a powerful impact on the market. If major economies begin buying and holding large amounts of BTC, demand could surge, potentially driving prices higher. Analysts suggest that such moves could push Bitcoin’s value toward $200,000–$250,000 in the coming years.

However, not everyone views this as entirely positive. Some crypto supporters worry that government involvement could threaten decentralization, the very principle that makes Bitcoin unique. If too much of Bitcoin’s supply ends up in the hands of central authorities, it could reduce individual control and contradict Bitcoin’s founding vision of financial independence.

The Start of a New Financial Era

Whether one sees this as progress or a warning, the fact remains, governments are entering the Bitcoin era. From Washington’s proposed legislation to the UK’s quiet reserves, the world is beginning to recognize Bitcoin not just as a digital asset but as a strategic financial tool.

This new “digital gold rush” could mark the beginning of a long-term transformation in how nations store wealth and manage economic uncertainty. For the first time, countries are not just printing money they are starting to mine and hold it, signaling a major turning point in global finance.