In recent months, six countries are seriously considering the use of Bitcoin in their reserves. This trend could significantly impact global cryptocurrency markets.
Introduction to Bitcoin Reserve Strategy
Currently, central banks worldwide hold $27.7 trillion in global reserves. If just 2% of these funds were allocated to Bitcoin, it could result in a $554 billion injection into a market where only 2.17 million BTC are liquid. This situation could significantly influence prices and the availability of cryptocurrency.
Comparative Analysis of Country Proposals
Among the countries discussing this strategy are the Czech Republic, Russia, Brazil, Germany, Hong Kong, and the USA. Each is developing its approach, although not all proposals might reach the implementation stage. For instance, the Czech Republic considers investing 5% of its reserves in Bitcoin, while Brazil 3%, and Russia 1%, contingent upon market stabilization.
Potential Demand and Market Supply
According to Coinglass data, there are 2.17 million BTC in circulation on major exchanges, totaling $217 billion. While global reserves might require more than 5.54 million BTC, the available supply could be significantly lower. Even purchasing these volumes gradually over several years could have a substantial market impact.
While some proposals might not be approved, the mere discussion of these plans among countries enhances interest and potential impact on a market that remains limited in the number of coins issued.
