Strategic Bitcoin Reserve: What It Is and How It Works
Summary: The Strategic Bitcoin Reserve #BTC is a strategic reserve of Bitcoin controlled by the government aimed at hedging against inflation, diversifying reserves, and enhancing financial security, but it carries risks such as volatility, regulatory uncertainty, and security vulnerabilities.
The United States is leading efforts to formalize digital currency reserves through regulated assets, direct purchases, and mining, while Switzerland, the European Union, and other countries remain skeptical due to stability and monetary policy risks.
What Is the Strategic Bitcoin Reserve?
The Strategic Bitcoin Reserve (SBR) is a reserve of Bitcoin held by the government and used to enhance financial security and hedge against inflation. Unlike gold or oil reserves, it is a digital asset reserve managed to preserve national wealth and address monetary instability.
This concept originated in the United States in July 2024 when Senator Cynthia Lummis introduced the Bitcoin Bill to empower the U.S. Treasury to accumulate Bitcoin as a strategic asset. In January 2025, President Donald Trump signed an executive order directing federal agencies to explore Bitcoin acquisition processes.
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