In recent years, companies and governments have started to include cryptocurrencies in their treasury strategies. This is due to the desire to protect assets from inflation and ensure liquidity.
Treasury Strategies with Cryptocurrency
Traditionally, treasuries relied on cash, gold, or government bonds. However, cash loses purchasing power while bonds carry interest rate risks. Cryptocurrencies like Bitcoin and Ether are now part of reserves, providing swift asset transfer and digital platform support.
Bitcoin as Digital Gold
Bitcoin occupies a unique position in the cryptocurrency world, serving as a hedge against inflation. Since 2021, El Salvador adopted Bitcoin as legal tender. In the US, a bill has been proposed to create a Strategic Bitcoin Reserve, while several companies actively accumulate BTC in their treasuries. Despite price volatility, Bitcoin remains a reliable asset.
Ether as a Programmable Alternative
With its shift to proof-of-stake, Ether has become an attractive asset for treasuries, offering income through staking. Ethereum provides access to liquidity through decentralized finance projects, despite existing risks and regulatory uncertainties.
Holding both Bitcoin and Ether offers a way to diversify investment strategies. Each asset brings unique benefits, making them important components of modern treasury strategies.
