Finding out that governments who typically are suspicious of cryptocurrencies are surreptitiously accumulating most Bitcoin holdings is shocking
Based on BitcoinTreasuries, governments worldwide have combined 567,000 Bitcoins, valued at approximately $36 billion as of April 2024. These interests indicate a change in the global financial scene, with Bitcoin moving toward popular legitimacy, not only out of curiosity.
The top 5 governments that hold the most Bitcoin will be revealed in this article, offering ideas on how these reserves can affect the crypto market going forward and conventional finance.
The Shocking Union: Governments and Bitcoin
Shockingly, governments are stealthily accumulating Bitcoin, a move that has left many crypto enthusiasts shocked and fascinated. Why suddenly would one be interested in knowing how much crypto governments in different world nations hold?
It could seem startling to consider governments as crypto holders; their activities highlight the indisputable impact of Bitcoin on modern society.
The governments holding the most Bitcoin might influence the direction of traditional finance and digital assets as their lines blur.
Bitcoin Holding by Governments
Determining the amount of Bitcoin held by different governments is challenging due to the decentralized nature of Bitcoin and the varying transparency levels of different governments.
Governments worldwide hold a combined 567,000 Bitcoins, according to BitcoinTreasuries, worth over $36bn as of April 2024. However, central banks haven’t adopted cryptocurrency yet.
Most Bitcoin reserves held by governments account for 2.7% of the total 21 million supply of bitcoins, with the largest being the US Government, with over 210,000 bitcoins worth more than $13bn at the time of writing.
For scale, public companies hold a combined 305,000 bitcoins, the majority of which is held by MicroStrategy, which has been accumulating most Bitcoin fervently since adopting the cryptocurrency as its primary treasury reserve asset in 2020.
Some governments now hold significant Bitcoin (BTC) reserves, whether through confiscations, strategic investments, or legal initiatives. Below is a list of the top five governments with the largest Bitcoin holdings:
- United States
- China
- United Kingdom
- Ukraine
- El Salvador
Government 1: United States
The United States (U.S.) has the largest BTC reserve. Per data on BitcoinTreasuries, the US government owned exactly 213,246 BTC at the time of writing, which is worth over $13.5 billion based on the current prices.
However, Arkham, a leading crypto intelligence platform focused on deanonymizing entities on the blockchain, shows the US government has a balance of 213,297 BTC. Representing 1.015% of the crypto asset’s total supply, the U.S. government’s BTC stash is largely attributed to confiscations from cybercriminals and dark web market operations.
The regulatory climate for crypto in the US, involving recent actions against crypto-related companies by U.S. regulators and agencies, is relatively hostile. The U.S. Securities and Exchange Commission (SEC) has taken enforcement actions against crypto-related companies.
Government 2: China
China is another top government with the most bitcoin, with its current holdings representing 0.905% of BTC’s total supply and worth over $12.5 billion as of July 2024. The Chinese government owns 190,000 BTC at the time of writing, according to BitcoinTreasury data.
Multiple reports show that the Chinese government amassed most of the Bitcoin stash from funds seized from the PlusToken Ponzi scheme. This Ponzi scheme started in 2018 as a crypto wallet project based in China, which promised investors a 30% return on their investments.
In January 2024, Chinese law enforcement seized BTC worth more than £1.4 billion after uncovering an investment fraud carried out by Zhimin Qian and Jian Wien between 2014 and 2017.
Government 3: United Kingdom
Known for its crypto-friendliness and calculated actions towards crypto regulation, the United Kingdom ranks third with the most bitcoin on its balance sheet.
As of July 2024, the United Kingdom, which comprises four constituent countries—England, Scotland, Wales, and Northern Ireland—boasts 61,000 bitcoins in its holdings, according to BitcoinTreasuries.
Valued at over $3.8 billion based on the current prices at the time of writing, the UK government’s bitcoin balance is equivalent to 0.29% of the total supply of crypto assets. Notably, Arkham’s dashboard captures a balance of 61,245 BTC for the UK government at press time.
Government 4: Ukraine
The Ukrainian government is closely following the UK regarding BTC holdings, boasting a balance of 46,351 bitcoin at the time of writing. Like most governments, a significant part of the Ukrainian government’s Bitcoin holdings comes from confiscations related to financial crimes.
In December 2023, as reported by local news outlet RBC, the National Anti-Corruption Bureau of Ukraine (NABU) seized $1.5 million worth of cryptocurrency from Ukraine’s former head of the State Special Communications Service, Yuriy Shchigol. Supported by the country’s Supreme Anti-Corruption Court, the seizure involved $1.2 million worth of tether (USDT) and 6.9 BTC.
Government 5: El Salvador
El Salvador is among the few countries exposed to bitcoin as an investment strategy and means to boost economic growth and tourism revenue. According to BitcoinTreasuries and Arkham, the Salvadoran government holds roughly 5,800 bitcoin worth about $370 million at the time of writing.
In September 2021, under the presidential regime of Nayib Bukele, El Salvador became the first government to accept bitcoin as legal tender. To grow its bitcoin holdings, the country initiated a dollar-cost averaging approach in November 2021 that allows it to buy 1 BTC per day.
The Implications of Government Bitcoin Ownership
Unbelievably, governments are stealthily holding Bitcoin, a move that has left many crypto enthusiasts shocked and fascinated. Why suddenly would one be interested?
For some, it’s a calculated defense against inflation that lets them spread their holdings among an asset resistant to conventional economic swings. Others view it as a means of enhancing their financial presence so they may continue participating in the progressively digital world economy.
Furthermore, the distributed character of Bitcoin presents governments with a special chance to regulate and influence a rising economic power that, until lately, was mostly beyond their reach.
These governments protect their positions in the crypto market and acquire a strong instrument for economic strategy by owning large volumes of Bitcoin, perhaps influencing world commerce and finance in undetermined ways.
Therefore, even if it could seem startling to consider governments as crypto holders, their activities highlight the indisputable impact of Bitcoin on modern society.
The governments holding the most Bitcoin might influence the direction of traditional finance and digital assets as their lines blur.
Conclusion
It’s genuinely shocking to see governments like the United States, China, and the United Kingdom among the largest holders of Bitcoin, each amassing substantial reserves from various sources, including criminal seizures and strategic investments.
The involvement of these powerful governments marks a significant shift, with Bitcoin moving from a fringe asset to a tool of financial strategy for even the most cautious governments.