Bitcoin Strategic Asset Adoption Wave from the US... Canada and Brazil 'Busy'

Texas, a Hub for Mining Companies
Bill Proposed to Stockpile Bitcoin as a Strategic Asset
Second After Pennsylvania Last Month

Active Discussions in Other Countries Like Canada and Poland
However, Adoption as a US Strategic Asset Remains Uncertain Due to Volatility

Following Pennsylvania, a bill has been introduced in Texas, a 'Republican stronghold,' to reserve the cryptocurrency Bitcoin as a strategic asset for the state government. This move is seen as aligning with the plan of President-elect Donald Trump, who has dubbed himself the 'Cryptocurrency President' and pledged to hold Bitcoin strategically like gold and crude oil. A similar bill has also passed in Canada. Analysts suggest that the U.S.-led movement to designate Bitcoin as a strategic asset could incentivize other countries to stockpile Bitcoin as well.

Texas State "Strategic Bitcoin Reserve"

According to economic media CNBC, on the 12th (local time), Texas introduced the 'Texas Strategic Bitcoin Reserve Act,' which mandates the state government to reserve Bitcoin as a strategic asset. The bill includes provisions allowing the state government to accept taxes, administrative fees, and donations in Bitcoin and to hold Bitcoin for at least five years.

Texas is a 'Republican stronghold' and the state with the highest concentration of Bitcoin mining companies. Giovanni Capriglione, a Republican member of the Texas House of Representatives who introduced the bill, stated, "Strategic Bitcoin reserves can serve as a hedge against inflation (risk diversification)" and "It aligns with Texas's promise to provide better financial stability to its residents."

Prior to this, Pennsylvania was the first state to introduce a bill related to Bitcoin as a strategic asset. Last month, Michael Cabell, a Republican member of the Pennsylvania House of Representatives, introduced a bill to invest up to 10% of the state's treasury funds in Bitcoin. According to the nonprofit Bitcoin advocacy group 'Satoshi Action Fund,' discussions are underway in 10 other states to create similar bills beyond Texas and Pennsylvania.

Preparing for Trump 2.0... Strategic Asset Boom Everywhere

Locally, it is analyzed that this is a response to President-elect Trump, who will take office in January next year and has pledged to make Bitcoin a national reserve asset. Previously, Trump expressed his vision to hold Bitcoin strategically, similar to how the U.S. Federal Reserve and Treasury hold gold and the Department of Energy reserves crude oil.

This discussion gained momentum after pro-cryptocurrency Republican Senator Cynthia Lummis introduced the 'Bitcoin Reserve Act' in July, which calls for the Treasury to purchase one million Bitcoins. CNBC predicted, "The U.S. movement to designate Bitcoin as a strategic asset could lead other countries to adopt similar strategies."

In Canada, which faces the so-called 'Trump tariff' threat, discussions on making Bitcoin a reserve asset are also active. According to Bloomberg News, the Vancouver City Council passed a bill yesterday to conduct a comprehensive analysis that includes using Bitcoin in city financial operations and integrating it into the city's financial strategy. Ken Sim, the pro-cryptocurrency mayor of Vancouver, said, "Because of what suddenly happened in the U.S., many other countries and regions have shown signs of adopting cryptocurrencies," adding, "We want to be ahead of them."

Poland's presidential candidate Sławomir Mentzen also announced last month his intention to designate Bitcoin as a strategic asset. In Brazil, a bill was introduced at the end of the same month to allocate 5% of international reserves to Bitcoin. However, as of now, El Salvador remains the only country to officially adopt Bitcoin as a national strategic asset.

"High Volatility" "Who Regulates?" Concerns Raised

There is considerable uncertainty about whether the U.S. will strategically reserve Bitcoin as President-elect Trump pledged. Due to its high volatility, concerns have been raised by authorities such as the Federal Reserve (Fed), the central bank.

Bill Dudley, former president of the New York Federal Reserve Bank (pictured), recently expressed in a Bloomberg column that for a country to purchase Bitcoin, "the Treasury would have to borrow (increasing debt servicing costs), or the Fed would have to print money (promoting inflation)." He also pointed out, "Legislative definitions are needed to clarify whether tokens (cryptocurrencies) are currencies or securities and who regulates them. Rules must also be established to protect consumers and prohibit their use in criminal activities such as terrorist financing or illegal drug sales." This explains why many obstacles are expected before a country can designate Bitcoin as a strategic asset.

However, the mere progress of related discussions can boost cryptocurrency prices, making it a 'win-win' for both President-elect Trump, who is involved in the project, and cryptocurrency investors. Since the U.S. presidential election, Bitcoin's price has surged over 45%, exceeding $100,000 per coin as of 9:30 a.m. Korean time on the 13th.

This content was produced with the assistance of AI translation services.