The U.K. and Germany's cache of seized bitcoins is 61,000 and 50,000, respectively. Few select ones are a step ahead. Bitcoin holds a legal tender status in Al Salvador and the Central African Republic. El Salvador bought 2,546 BTC for 108 million, and, as its President Nayyib Bukele announced in 2022, the country buys at least 1 bitcoin every day. Since the war against Russia, Ukraine has received bitcoin donations worth $22.8 million, and its public officials estimatedly own over 46,000 BTC. India's neighbour Bhutan is heavily into Bitcoin mining. Its government wants to leverage cheap hydroelectric power in the country to mine more bitcoins. “(Such a move) opens up an interesting future for digital assets in global economics. This is especially valid for countries with a high retail adoption of crypto (India, U.S., etc.),” says Vikram Subburaj, CEO, Giottus Crypto Exchange.

Besides, listed, and non-listed companies and ETFs in the U.S. also hold the highest crypto assets. Michael Saylor's Microstrategy holds about 2,26,500 bitcoins worth $13.2 billion, according to Bitcoin Treasuries data. Mt. Gox among private companies owns the largest share of 2,00,000 BTC valued at $11.7 billion. ETFs in the U.S. manage the largest share of Bitcoins across categories. iShares Bitcoin Trust of Blackrock holds 3,48,609.2 BTC worth $20.4 billion. Marathon Digital Holdings Inc. tops among mining companies with 24,962 BTC. Of the total limited quantity (19.7 mn) of bitcoins, only 1.2 mn are left to be mined. “Being finite, easier to store and globally acceptable (yet to happen) might give BTC the legitimacy, to act as a reserve asset,” says Chatterjee of A2Z Crypto. Mudrex’s Patel says as the U.S. holds 1% of the total bitcoins and 40% of its population invested in crypto, Trump’s initiative could “reinforce the nation’s financial stability”.

But is such a move possible?

Cash and gold help countries with non-U.S. dollar currencies, especially in times of financial crisis. “Once reserves are formed, they can be used for cross-border trade that is not pegged in US dollars. Bitcoin might prove to be the neutral currency that governments agree on,” says Subburaj of Giottus. As for who will manage such a reserve, experts say the central bank could manage bitcoin reserves like gold or oil, with some powers from the government. However, how this will pan out in reality is still unclear. If governments reserve crypto like gold or oil, it would shore up prices but also mean fewer BTCs for trade. This could make a volatile currency even more “vulnerable” to fluctuation. Moreover, killing the whole idea of “decentralised currency” by controlling it, might make it less attractive. Fears are if the U.S. and other superpowers join the Bitcoin race, it may lead to “concentration” of power.

Major central banks are still sceptical about crypto. The U.S. Federal Reserve has not decided whether to pursue or implement a central bank digital currency or CBDC but is still exploring its potential benefits and risks. The RBI started exploring CBDC or e-rupee in 2022, but warned investors regarding its "lack of accountability and stability". According to the Atlantic Council, only 3 countries have fully launched a CBDC so far — the Bahamas, Jamaica and Nigeria. 19 of the G20 countries are in advanced stages and 36 have ongoing CBDC pilots.

Where does India stand?

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