The concept of a Bitcoin 'race' has become a reality as global leaders discuss the urgency of establishing digital asset reserves or embracing cryptocurrency as legal tender.
The Bitcoin Race: Geopolitics and Strategy
In 2021, El Salvador became the first country to make Bitcoin legal tender, purchasing over 2,000 BTC as part of a national reserve for financial inclusion and economic growth. Similarly, in 2022, the Central African Republic adopted Bitcoin aiming to improve economic development and financial inclusion. Investor Anthony Pompliano remarked on 'a race to buy Bitcoin akin to the space race.'
US Position and Michael Saylor's Influence
Michael Saylor, a prominent Bitcoin advocate, has emphasized the strategic importance of BTC for the U.S., calling the current situation a 'digital gold rush.' He argues the U.S. government should secure Bitcoin as a reserve. President Donald Trump and Senator Cynthia Lummis have echoed this sentiment, emphasizing the importance of a competitive edge in the digital economy.
Skeptics and Those on the Sidelines
Many European countries, such as Germany and Switzerland, have opted not to participate in the Bitcoin race, citing its high volatility and low liquidity. Some nations like Japan and South Korea focus on other aspects of digital transformation, avoiding direct investment in Bitcoin as a reserve.
While many countries and companies are actively pursuing the Bitcoin race, there remain significant skeptics. How this will shift the balance of power in the digital arena remains to be seen.
