Binance, a popular cryptocurrency exchange, is involved in discussions on establishing strategic digital asset reserves with several countries. Binance Supports Countries with Bitcoin Strategic Reserve. Despite facing criminal charges in 2023, Binance now seems to be advising governments and sovereign wealth funds on how to create national strategic Bitcoin reserves and set digital asset regulations, Binance CEO Richard Teng told the Financial Times.
Consequently, the topic of Bitcoin’s strategic reserves became one of the most trending topics as at 6th April, 2025 in the financial world. The U.S. officially announced the creation of such a reserve on March 7, including 200,000 confiscated bitcoins.
Donald Trump, the President of the U.S., who actively supports cryptocurrencies, stated that Bitcoin (BTC) and Ethereum (ETH) will form the basis of this reserve. Later, altcoins like XRP, Solana, and Cardano may be added. This decision has already caused the value of BTC to rise by 20% in early March.
Experts give credence to the fact that the strategic reserve could thoroughly change the financial system. The U.S. failed to grant the request to sell confiscated bitcoins, which created an avenue for a shortage in the market, pushing prices up.
Venture capitalist Matt Higgins predicts that if 1 million bitcoins are moved into reserves, its supply is bound to fall by 6.6%, and the price could skyrocket by 30%. This act could make Bitcoin an alternative reserve asset, similar to gold, especially amid the weakening dollar due to trade wars.
Will Bitcoin Become a Global Asset?
While the governments of Pakistan and Kyrgyzstan, respectively, announced collaboration with Binance and former CEO Changpeng Zhao on crypto regulations in the past few weeks, none of the jurisdictions mentioned crypto reserve plans on their agenda.
However, there are speculations that risks are involved. Furthermore, the accumulation of Bitcoins in the hands of the government gives room to manoeuvre the market, thereby leading to increased market control. Some analysts fear that the U.S. may use the reserves to manipulate or stabilize its economy at the expense of the crypto market.
At the same time, the U.S. initiative inspires other countries: Texas has already approved its bill on bitcoin reserves, and Europe, particularly the UK, is actively investing in BTC through pension funds.
Binance Supports Countries with Bitcoin Strategic Reserve. Will Bitcoin become a new global asset, or will it remain a mere tool for speculation? The discussion is just beginning. This could revolutionize global finance and boost crypto adoption. Are we on the edge of a new financial era?
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