Pursuing Significant Advantages in the Digital Currency, Bitcoin!
The world of digital assets, particularly Bitcoin, is no longer a fringe financial phenomenon. Governments across the globe are recognising its potential and are strategically integrating cryptocurrencies into their financial policymaking.
In the United States, President Trump's 2025 executive order established the Strategic Bitcoin Reserve (SBR), a long-term government asset primarily composed of Bitcoin seized from criminal activity. The BITCOIN Act of 2025 aims to codify this policy, with the Treasury targeting the acquisition of up to one million BTC over five years, to be held for at least 20 years as a hedge against economic uncertainty and monetary instability. This move signifies official recognition of Bitcoin as a legitimate asset class and potential reserve currency for diversification.
However, the U.S. Treasury has announced that it will not use taxpayer funds to purchase more Bitcoin, instead expanding the reserve through the seizure of illicit assets. Regulatory and policy development in the U.S. is also underway, with the White House's July 2025 Crypto Policy Report aiming to address regulatory gaps, provide clearer trading guidelines, and encourage institutional participation—balancing innovation and risk management.
Meanwhile, China, which banned crypto trading and mining in 2021, is reconsidering yuan-backed stablecoins to expand the yuan’s role in global trade. This policy reversal is aimed at boosting yuan internationalization and includes providing a regulatory framework and political backing for stablecoin development. China sees digital assets as strategic tools to enhance geopolitical and financial influence.
The global stablecoin market, dominated by dollar-backed tokens, is projected to grow to $2 trillion by 2028. Governments view stablecoins as important tools for international trade, currency competition, and financial stability.
In China, the integration of Bitcoin into the payment system could mark the incorporation of one of the most influential innovations in global finance over the past five years. The Chinese government sees Bitcoin as an effective anchor for maintaining the credibility of its currency and the global monetary system, due to its volatility and lack of transparency in traditional currencies.
This strategic alignment of Bitcoin and cryptocurrencies with global financial policymaking includes treating digital assets as diversification and stability assets at the national reserve level, developing comprehensive regulatory frameworks to promote adoption while managing risk, utilising stablecoins to advance currency internationalization and global trade leadership, and emphasising enforcement actions to both fund reserves and deter illicit use.
These steps underscore a shift from skepticism to strategic integration of cryptocurrencies into global and national financial policies, making digital assets an integral part of the financial landscape.
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