Traditionally, the foundation of national financial reserves consisted of gold, foreign currency (primarily dollars), and other highly liquid instruments. However, against the backdrop of the rapid spread of digital assets, the idea of forming a crypto reserve — stocks of cryptocurrency that can be used in addition to classical instruments or even partially replace them — is becoming increasingly common.
With the right approach, such assets would allow governments to diversify reserves, enhance economic resilience, and make the financial system more technological.
What is a crypto reserve and why do states need it
A crypto reserve is a state stock of digital assets, such as bitcoin or Ethereum. Essentially, it is similar to gold and currency reserves and can be used for:
protection of the economy during crisis periods. In the case of devaluation of the national currency or global upheavals, cryptocurrency can serve as a reserve asset that can be sold and used to stabilize the situation;
insurance against freezing of funds and sanctions. Bitcoin is not subject to control by individual countries or regulators, making it especially attractive for use under external restrictions;
diversification of reserves. The use of cryptocurrencies allows reducing dependence on traditional assets and strengthening financial stability in cases where their price falls sharply.
At the same time, the reserve of digital assets is not a theoretical concept but a real solution that is already being applied in several countries.
History and reasons for the emergence of crypto reserves
Governments began to reassess the role of cryptocurrencies in financial strategy several years ago. In June 2021, El Salvador became the first country to recognize bitcoin as official legal tender.
President Nayib Bukele's initiative was accompanied by the launch of Chivo Wallet and the installation of hundreds of crypto ATMs throughout the country. The government was purchasing bitcoin while simultaneously developing the infrastructure for using cryptocurrencies. However, by 2024, only 7.5% of the population used bitcoin in everyday transactions.
In 2025, under an agreement with the IMF, the government adjusted its policy, making the acceptance of cryptocurrencies voluntary, but El Salvador continues to purchase bitcoin.
Another notable example of cryptocurrency adoption at the state level is Bhutan. The kingdom, known for its isolation, has systematically accumulated bitcoins since 2020, using excess hydropower for mining.
As of 2024, Bhutan owns over 13,000 $BTC — this is one of the largest state reserves in the world. Additionally, in early 2025, the administration of the Geliphhu economic zone included bitcoin, ethereum, and Binance Coin as strategic assets, officially securing digital assets within municipal management.
However, the truly pivotal moment was the formation of a strategic reserve in the United States. In March 2025, US authorities announced the creation of a strategic stock of digital assets aimed at strengthening economic stability and enhancing the financial position of the country.
On March 7, the corresponding decree was signed by President Donald Trump. According to the document, the basis of the reserve will be confiscated cryptocurrencies seized in criminal and civil cases. The sale of these assets is prohibited — they will be used for long-term value storage.
The integration of cryptocurrencies into the economic strategies of states is driven by a number of factors. Among them:
diversification. Cryptocurrencies reduce dependence on traditional currencies and gold;
protection against inflation. Against the backdrop of global upheavals, digital assets are seen as a means of preserving value;
financial independence. Own reserves and payment infrastructure reduce vulnerability to external pressure;
global competition. Participation in the race to accumulate 'digital gold' is becoming part of state policy.
These initiatives demonstrate the readiness of some countries to integrate modern financial instruments into state economic strategy, highlighting the importance of cryptocurrencies in the contemporary world.
How the crypto reserve is formed: main methods
There are several approaches through which countries can accumulate digital assets to fill a strategic reserve. Each of them has its own advantages, risks, and limitations.
Direct purchases on the market
One of the most obvious ways is direct purchases of cryptocurrency. The state can acquire bitcoin, Ethereum, and other assets on centralized exchanges like Binance, Coinbase, or Kraken. Alternatively, over-the-counter (OTC) deals are used, which allow for large transactions with minimal market impact.
advantages: full control over the process — authorities themselves determine the volumes, timelines, and composition of assets. Additionally, the high liquidity of leading platforms allows significant volumes of cryptocurrency to be purchased without delays.
disadvantages: firstly, the prices of digital assets are subject to sharp fluctuations, and secondly, there is a high probability of acquiring cryptocurrency at its peak, which may lead to losses during market correction.
The only state currently using this method is El Salvador. However, as a rule, the country buys one bitcoin per day, which does not significantly impact the markets.
Confiscation of crypto assets
An alternative method is obtaining cryptocurrency through confiscation. Many states seize digital assets in the course of cybercrime, money laundering, or other violations. After the investigation is completed and a court decision is made, the assets are transferred to the state's disposal.
advantages: does not require additional expenses, and volumes can be quite significant. For example, in 2023, US authorities confiscated about 70,000 BTC in the course of the Silk Road dark net marketplace closure case;
disadvantages: confiscations — the process is irregular, and additionally, the allocation of seized funds from criminals can take years due to legal procedures and appeals.
It is precisely the confiscated funds that form the basis of the national crypto reserve of the US. This method of accumulating cryptocurrency is also planned to be used by some states aiming to create their own reserves of digital assets.
It is noteworthy that in 2024, Germany sold about 50,000 BTC confiscated from the creators of the piracy site Movie2k. Today, these assets could potentially lay the foundation for a strategic reserve in this country and make it one of the largest holders of bitcoin.
State mining
The third option is launching state mining programs. The essence is simple: the state builds infrastructure or finances bitcoin mining, and the obtained coins go into the reserve.
advantages: mining provides full control over the emission process and potential profit as the price rises. Additionally, part of the mined assets can be sold to cover operating expenses;
disadvantages: high initial costs and the need for long-term planning. This approach is often criticized for its environmental consequences.
It was the development of mining that allowed Bhutan to accumulate a comparatively large reserve of bitcoins despite not having an extensive budget for market purchases.
Similar initiatives are also emerging in Texas, Ethiopia, Pakistan, and other regions with excess cheap electricity. However, they often provide for indirect government income from taxing miners rather than transferring cryptocurrency.
Payment of taxes and fines
Some countries and US states are considering the possibility of accepting tax payments, fees, and fines in cryptocurrency. This approach allows not only to form a strategic reserve but also to more broadly integrate digital assets into the state economy.
advantages: this model increases trust in cryptocurrencies and facilitates the transition to digital payments based on blockchain infrastructure.
disadvantages: implementation requires extensive changes in the tax system, legislation, and IT infrastructure. The issue of volatility remains unresolved, and therefore the predictability of tax revenues.
At the time of writing, payment of taxes and fines in cryptocurrency is supported in several cantons of Switzerland, as well as in some states, such as Colorado, and individual municipalities in Canada. However, these programs are relatively limited and allow for the formation of only local crypto reserves.
Conversion of traditional assets
Another method is the partial conversion of existing assets. The government can sell part of its gold and foreign currency reserves (for example, dollars, euros, or gold) and use the proceeds to purchase cryptocurrencies.
advantages: it is possible to relatively quickly assemble a digital reserve without creating additional burdens on the budget. Furthermore, diversification reduces risks associated with the monetary policy of individual countries and macroeconomics;
disadvantages: the transition to cryptocurrencies within the traditional reserve may meet resistance from central banks and financial regulators. Gold and reserve currencies are still perceived as 'anchors of stability'.
It is noteworthy that this is precisely the way the crypto reserve was supposed to be formed according to Cynthia Lummis's proposal. Her bill, also known as the Bitcoin Act, suggests that the US government should acquire 1 million bitcoins over the course of 5 years, including through profits from the revaluation of the country's gold reserves.
Cryptocurrencies in reserve: which assets are chosen
In forming the crypto reserve, US authorities placed a bet on assets combining high liquidity, stable reputation, and technological significance. President Donald Trump officially confirmed that the strategic reserve will include the following assets:
Bitcoin #BTC
The first and most capitalized cryptocurrency. Due to its limited issuance and high liquidity, bitcoin is considered a digital equivalent of gold, and its decentralization and resistance to external pressure make it attractive to any political blocs.
Ethereum $ETH
The second most capitalized cryptocurrency and the basis for the ecosystem of decentralized applications. Ethereum supports smart contracts and serves as an infrastructure platform for DeFi and other blockchain platforms. Its inclusion in the reserve reflects a bet on the technological development of the industry.
XRP
The token of the company Ripple, focused on cross-border payments. It is used by several financial institutions as a means of instant transfer with minimal costs. After the conclusion of the lawsuit with the US Securities and Exchange Commission (SEC), $XRP is gaining institutional recognition again, making it a candidate for the state reserve.
Solana #solana
High-speed blockchain with minimal fees. Often used in projects aimed at a mass audience, including gaming platforms, AI, and DePIN. Despite its reputation as a 'meme coin network', Solana is actively developing in the US and demonstrating a high level of user activity.
Cardano #ADA
A project known for its scientific approach to development. Cardano emphasizes security, scalability, and formal verification of smart contracts. These characteristics make it attractive for long-term state storage. 10723
Why were these assets chosen:
liquidity. All listed cryptocurrencies have large market volumes, making it easier to make significant purchases and sales;
institutional support. These assets are already present in the portfolios of funds and other regulated market participants. Additionally, spot exchange-traded funds for bitcoin and Ethereum have already been launched;
trust. All five coins are in the top 10 by market capitalization. This makes them resilient to short-term fluctuations and increases trust from citizens.
Another criterion for evaluation is the connection of projects with the United States. Trump's Made in US policy prioritizes those cryptocurrencies whose creators are registered, operate in the US, or position themselves as market-oriented.
At the same time, tension remains around some assets. In particular, one of the founders of Solana, Anatoly Yakovenko, expressed doubts about the feasibility of creating a national reserve of digital assets and concerns about possible centralization.
Practical impact of the crypto reserve on the market and traders
President Donald Trump's announcement of the launch of a strategic crypto reserve was a turning point for the industry. It bolstered trust in cryptocurrencies from institutional and retail investors, provoking a short-term rise in bitcoin and overall market capitalization. However, after the initial impulse, a correction phase followed — a typical scenario for news spikes in a volatile environment.
Such dynamics reflect the market's sensitivity to macroeconomic signals. Investors and traders react instantly to statements from top politicians, especially if they concern state support for the industry. For traders, such dynamics create additional opportunities:
firstly, news about government interest in cryptocurrencies can serve as a buying signal;
secondly, with high risks and volatility, traders can use derivatives (for instance, options or futures) to hedge positions and increase them through leverage.
Initiatives to include cryptocurrencies in reserve savings are also an indicator of the maturity of digital assets, demonstrating that cryptocurrencies are transitioning from a speculative class to strategic financial instruments. This changes the rules of the game for all market participants, especially traders.
Problems and prospects of crypto reserves
The formation of a crypto reserve is a step that opens up new opportunities for the economy but is accompanied by a number of challenges, thus requiring not only technical preparation but also consensus within the political and financial system.
Main problems:
high volatility. Bitcoin and other cryptocurrencies are characterized by significant price fluctuations. This complicates their use as a stable store of value;
legal uncertainty. Despite the growing interest in digital assets, legislative frameworks in many countries are still not adapted to the use of cryptocurrencies in state governance;
political resistance. In the US, for example, initiatives to form a crypto reserve may face opposition in Congress. Analysts believe it is impossible to involve Federal Reserve resources without passing special legislation.
Potential prospects:
growth of the crypto industry. Integrating crypto assets into state reserves can stimulate the development of the blockchain industry, foster innovation, and create a basis for legitimate use of cryptocurrencies in the public sector;
international precedent. If the US successfully implements its crypto reserve strategy, it will signal to other countries. A global trend on the accumulation of cryptocurrencies may begin, which will accelerate their recognition and transformation into a full-fledged asset class.
However, there are many skeptics of the US initiative. Former Treasury Secretary Lawrence Summers called the idea of creating a bitcoin reserve 'nonsensical', emphasizing that in his opinion, bitcoin lacks practical or strategic value for the state.
Experts also point out that the implementation of the plan is impossible without coordination among key departments — in particular, the Department of Justice, the Treasury, and possibly Congress.
Conclusion
The initiative to create a crypto reserve is both a technological breakthrough and a political challenge for the state. In conditions where digital assets are becoming part of the global economic system, such a tool can offer a new level of financial stability. Bitcoin and other cryptocurrencies are potentially capable of protecting the financial system from inflation, sanction pressure, and currency crises.
However, this approach is fraught with a number of risks: high market volatility, lack of established regulation, and resistance from political and financial institutions. The US was the first to take a step in this direction, but the success of the initiative will depend on flexibility, inter-agency cooperation, and the willingness to adapt to rapidly changing conditions.
If the experience proves successful, it could become a global precedent and set a new direction for state financial policy in the digital age.
