Bitcoin Reserves: The Global Divide Over Crypto as a Strategic Asset

The conversation around Bitcoin as a sovereign reserve asset is accelerating, with governments, central banks, and lawmakers taking sharply different positions. While European regulators reject the idea outright, the United States is seeing a growing wave of legislative efforts to establish state Bitcoin reserves.

Meanwhile, Norway’s sovereign wealth fund is increasing its indirect Bitcoin exposure, and El Salvador is adjusting its Bitcoin adoption strategy in response to external pressures.

Europe’s Resistance

Christine Lagarde, President of the European Central Bank (ECB), has firmly dismissed the idea of Bitcoin entering the reserves of any EU central bank, according to a Thursday report by Reuters.

This response came after Czech National Bank Governor Ales Michl suggested exploring Bitcoin as part of his country’s official reserves. While the Czech Republic does not use the euro, its central bank remains part of the ECB’s General Council.

“I am confident that ... bitcoins won't enter the reserves of any of the central banks of the General Council,” Lagarde stated. She reinforced the ECB’s stance that central bank reserves should remain "liquid, secure, and safe," arguing that Bitcoin’s volatility and concentrated ownership make it unsuitable for national reserves.

Despite this resistance, the Czech National Bank has approved an analysis to explore broadening its reserve assets, without explicitly mentioning Bitcoin. On the other side of the debate, central banks in Poland and Romania said they have no plans to invest in cryptocurrencies, with Poland calling the asset class "very high risk," Reuters reported.

U.S. States Push Ahead With Bitcoin Reserve Legislation

In contrast to Europe’s reluctance, a growing number of U.S. states are actively working to establish Bitcoin reserves. Lawmakers in Kentucky and South Dakota announced plans this week to introduce Bitcoin reserve bills, joining a wave of similar legislation across the country.

If passed, these states would become the latest to push for Bitcoin-backed state reserves, following the lead of Arizona, Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota.

The momentum behind these initiatives reflects a broader effort to stay ahead of federal policy. With President Donald Trump recently signing an executive order to explore a national cryptocurrency reserve, states are moving to establish their own Bitcoin holdings before a federal framework takes shape.

The Satoshi Action Fund, which has been advocating for these measures, described the bills as "just the beginning," emphasizing the need for continued legislative progress to turn these proposals into actionable policies.

Norway’s Sovereign Wealth Fund Increases Bitcoin Exposure

While the ECB and other European regulators reject Bitcoin as a sovereign asset, Norway’s massive sovereign wealth fund, Norges Bank Investment Management (NBIM), has quietly increased its indirect exposure, according to K33 research.

At the end of 2024, NBIM held 3,821 BTC worth approximately $356.7 million, marking a 153% increase in Bitcoin exposure year-over-year.

NBIM’s exposure primarily comes from its investments in Bitcoin-related companies, including MicroStrategy, Coinbase, and Tesla. The fund, which manages over $1.5 trillion in oil and gas revenues, continues to see Bitcoin exposure grow as these companies’ valuations rise.

Although Norway’s central bank does not directly hold Bitcoin, the increasing presence of BTC within one of the world’s largest sovereign funds signals a shift in how institutions are approaching crypto as an asset class.

El Salvador: Scaling Back, But Still Holding Bitcoin

El Salvador, the first country to make Bitcoin legal tender, is adjusting its crypto strategy as part of a $1.4 billion deal with the International Monetary Fund (IMF),. The government recently passed a bill making Bitcoin acceptance voluntary for businesses, reversing an earlier mandate that required merchants to accept it, Reuters reported.

This move aligns with IMF demands for greater regulatory oversight and transparency in El Salvador’s Bitcoin experiment. However, the government remains committed to Bitcoin as a reserve asset, with 6,049 BTC on its balance sheet—currently valued at around $636 million.

President Nayib Bukele has acknowledged that Bitcoin adoption has been slower than expected but continues to push the narrative that BTC plays a role in national financial strategy. The country’s approach highlights the challenges of integrating Bitcoin into sovereign finance while balancing external pressures from traditional financial institutions.

With political, financial, and regulatory forces pulling in different directions, the battle over Bitcoin’s place in sovereign finance is far from settled. What is clear, however, is that Bitcoin is now a serious consideration in national and institutional financial strategies.