Original | Odaily Planet Daily ( @OdailyChina )
Author | Dingdang ( @XiaMiPP )
In 2025, cryptocurrencies are no longer a toy for niche investors, but a key chess piece in the global economic chess game. From El Salvadors adoption of Bitcoin as legal tender, to mainland Chinas total ban on crypto trading, to the United States attempt to build a Bitcoin reserve, the attitudes of various countries towards crypto reserves reflect very different strategic considerations, political positions, and technical beliefs.
In this emerging field, supporters see it as a pioneer of financial innovation, cautious people worry about its volatility and regulatory difficulties, and opponents see it as a threat to the traditional monetary system. This article will review the typical positions on crypto reserves around the world and analyze the motivations behind them.
Supporters: Pioneers and Experimenters of Crypto Reserves
US: Trump ignites Bitcoin arms race
On March 7, 2025, Trump signed an executive order to formally establish the U.S. Strategic Bitcoin Reserve, using approximately 200,000 bitcoins confiscated by the federal government as initial capital, with the aim of consolidating the status of the U.S. dollar and promoting the United States to become the global cryptocurrency capital.
Matt Hougan, chief investment officer of Bitwise, pointed out in an investment memo this week that Trump has completely changed the rules of the game in the crypto market. Hougan predicts that as a result, Latin American countries such as Honduras, Mexico or Guatemala may follow the footsteps of the United States and El Salvador to promote Bitcoin as an important global monetary asset. Galaxy Digital went a step further and boldly predicted that by the end of 2025, at least five countries will have established their own strategic Bitcoin reserves.
The US move not only boosted market confidence (the price of Bitcoin once exceeded $95,000), but also set a benchmark for the world, stimulating other countries to re-examine the strategic value of cryptocurrencies.
Texas: Local leadership for national change
The United States exploration of crypto reserves is showing a parallel trend between the federal government and the state . Texas has taken the lead and became the first state in the United States to establish a state-level crypto fund. The SB 21 bill passed by the state Senate created a Bitcoin Reserve Fund, which plans to hold Bitcoin and other top cryptocurrencies with a market value of more than $500 billion and is supervised by a dedicated advisory committee.
Lieutenant Governor Dan Patrick called the move an important milestone in the development of cryptocurrency and in line with Trumps national vision. Texass pioneering attempt may provide a template for other states and even federal policies.
Utah: Frustrated but not abandoned
In contrast, Utahs exploration is a bit tortuous. Although its Bitcoin bill HB 230 passed the state senate with a vote of 19:7 on March 7, 2025, the reserve clause that originally planned to authorize the Secretary of the Treasury to invest in Bitcoin was deleted in the final review, and only custody protection and basic participation rights were retained in the end. Despite this, the bill is still seen as a symbolic step for local support for cryptocurrency.
El Salvador: The lone brave man who persists in the Bitcoin experiment
El Salvador is a global pioneer in crypto reserves. In 2021, the country designated Bitcoin as legal tender, and President Nayib Bukele continued to increase his holdings of Bitcoin, with the official holdings of about 6,000 Bitcoins in an attempt to combat inflation and dependence on the US dollar.
In early 2025, El Salvador reached a $1.4 billion loan agreement with the International Monetary Fund (IMF). The IMF required it to give up the legal status of Bitcoin, but Bukele explicitly refused. So far, the IMF has stated that El Salvadors Bitcoin purchases have not violated the agreement (the agreement will take effect on April 30), but subsequent consultations may intensify the game between the two sides. Although this position is groundbreaking, it has been controversial due to international pressure and high volatility.
Cautious faction: wait-and-see and partial experimentation coexist
UK: Clearly rejects US-style reserves
The UK Treasury has made it clear that it has no plans to introduce US-style Bitcoin reserves, reflecting its cautious attitude towards cryptocurrencies. The UK prefers to view Bitcoin as an asset rather than a strategic reserve, and the Financial Conduct Authority (FCA) ensures compliance in the crypto market through strict AML and KYC supervision. The passage of the Stablecoin Act in 2023 and the exploration of central bank digital currencies (CBDCs) indicate that the UK may be more optimistic about controlled digital assets rather than decentralized Bitcoin reserves.
Australia: Regulation first, reserve to be determined
The Australian government also takes a cautious stance. A spokesman for Finance Minister Stephen Jones said that there is no intention to establish a strategic reserve of cryptocurrencies at this stage, and the current focus is on improving the regulatory framework for digital asset platforms. This attitude is similar to that of the United Kingdom, emphasizing compliance and risk control rather than aggressive inclusion in national reserves.
EU: Limited opening under unified regulation
The EU passed the Crypto-Asset Market Regulation Act (MiCA), which defines Bitcoin as a crypto-asset and allows its use in the payment field, but does not encourage it as a reserve asset. MiCA will take effect at the end of 2024 and requires crypto service providers to comply with strict regulations. The EUs attitude is to seek a balance between innovation and stability, and it is difficult to see member states follow the US reserve policy in the short term.
Japan: Gradual Exploration under Friendly Regulation
Japan is one of the first countries in the world to implement regulation on Bitcoin. In 2017, it revised the Payment Services Act (PSA) to define cryptocurrency as legal property, and required exchanges to register under the framework of the Financial Services Agency (FSA) and implement strict KYC and AML measures.
In March 2025, Japans ruling Liberal Democratic Party (LDP) has drafted a crypto tax reform proposal, which intends to reduce the cryptocurrency tax rate from a maximum of 55% to 20%, and reclassify it as a financial product, subject to the Financial Instruments and Exchange Act, similar to the tax model of securities investment. Currently, Japan regards cryptocurrency gains as miscellaneous income with a maximum tax rate of 55%. If the proposal is approved, crypto assets may receive independent tax treatment and lay the foundation for spot crypto ETFs. The LDP is soliciting public opinions until March 31, after which it will be submitted to the Financial Services Agency (FSA) for review.
The Bank of Japan and the Ministry of Finance are cautious about the volatility of cryptocurrencies, and Prime Minister Shigeru Ishiba has expressed hesitation about holding Bitcoin reserves, but is inclined to create a favorable environment for cryptocurrencies in terms of taxation and regulation.
South Korea: From waiting and watching to active discussion
South Koreas stance on cryptocurrencies has gradually opened up in recent years, especially after the United States established a Bitcoin reserve, domestic discussions on its strategic value have heated up. On March 9, 2025, financial experts and opposition party members proposed at a Seoul forum to include Bitcoin in the national reserve and develop a stablecoin backed by the Korean won to respond to global trends.
South Korea’s decision on a Bitcoin ETF is at a critical juncture, drawing on Japan’s path of transition from caution to openness. Kim So-young, vice chairman of the Financial Services Commission of South Korea, said that the spot Bitcoin ETF will be “carefully reviewed” , and this process may bring new development opportunities to the Korean crypto market.
Opposition: Bans and alternative paths
China: Comprehensive ban, digital RMB priority
Chinas attitude towards Bitcoin has been consistent: a complete ban. Since 2021, China has banned cryptocurrency trading and mining, believing that it threatens financial stability and capital controls. In 2025, this position has not loosened, and the government has made every effort to promote the digital RMB (e-CNY), replace decentralized crypto assets with controllable central bank digital currency, and accelerate the application of digital RMB and international cooperation. Chinas opposition to crypto reserves is based on both economic security considerations and the defense of monetary sovereignty.
India: From ban to heavy taxation
Although India has not banned Bitcoin as completely as China, it is highly wary of Bitcoin. After the 2018 trading ban was overturned by the Supreme Court in 2020, India instead defined it as a virtual digital asset and imposed a 30% capital gains tax and a 1% transaction tax. The high tax rate caused 95% of Indias trading volume to flow to overseas platforms.
In 2025, India has not shown any willingness to establish a crypto reserve, but the Trump administrations decision to establish a Bitcoin reserve has prompted India to reassess its position. Ajay Seth, Indias Secretary of Economic Affairs , said that multiple jurisdictions have changed their attitude towards Bitcoin, and we cannot decide unilaterally, showing Indias attention to global trends.
