Key Points
- Ten U.S. states have confirmed the introduction of legislation for strategic Bitcoin reserves.
- Bitcoin adoption at the state level could help combat the rising global debt, currently over $330 trillion.
Dennis Porter, CEO and co-founder of the Satoshi Action Fund (SAF), has announced that ten U.S. states are set to introduce legislation for strategic Bitcoin reserves. This move towards Bitcoin adoption at both the state and federal levels is imminent, according to Porter.
Porter enthusiastically stated, “We are going to win with Bitcoin. We will lead the world. No one will come close. The world will follow our lead.”
Bitcoin Adoption in the US
Through SAF, Porter has already assisted Texas lawmakers in formulating the necessary legislation to implement a strategic Bitcoin reserve. He also helped Pennsylvania lawmakers propose legislation that would allow the state treasury to allocate up to 10% of its reserves in Bitcoin.
The announcement also included Porter’s plan to join Wyoming Senator Cynthia Lummis on December 5 to share updates on the national strategic Bitcoin reserve. Porter suggested the upcoming U.S. president could successfully implement the strategic Bitcoin reserve, especially if an executive order is issued in the first week after inauguration.
Global Financial Impact
The ongoing discussions about Bitcoin adoption in the U.S. have highlighted the worsening financial situation in many countries. The U.S. national debt has surged to over $36 trillion, leading the upcoming Trump administration to consider ways to reduce government spending. This includes the DOGE program, led by tech billionaire Elon Musk and Vivek Ramaswamy.
Countries such as Japan have seen their national debt-to-GDP ratio rise to over 100 percent, a level most governments find unsustainable. As a result, the creation of a Bitcoin strategic reserve is being considered as a solution to the escalating global debts, currently exceeding $330 trillion.
El Salvador’s success with its Bitcoin adoption strategy has significantly influenced other nations to implement Bitcoin-friendly laws. Recently, Russia passed a national law recognizing Bitcoin and other cryptocurrencies as legal property.
The state of Bitcoin and digital assets is also evolving in China, with the approval of several Ether and Bitcoin ETFs in Hong Kong. Several Chinese companies have also adopted Bitcoin as a strategic reserve.
Market Consequences
Porter believes that the adoption of Bitcoin by nation-states will further heighten the demand vs supply stress in the coming years. With the total supply of Bitcoin on centralized exchanges at a multi-year low of about 2.27 million, he is confident that it will one day be nearly impossible to purchase Bitcoin from the secondary market.
Given the mainstream adoption of crypto assets by institutional investors, it is reasonable to predict that the price of Bitcoin has more upside potential in the coming months and decades.
