WEF Debates US National Bitcoin Reserve Plan

Key Takeaways: 

• Cryptocurrency policy discussions dominated the WEF's conference 2025 in Davos.
• Coinbase CEO Brian Armstrong reaffirmed Senate Cynthia Lummis’s active efforts to establish a Bitcoin reserve.
• Lesetja Kganyago, South Africa’s central bank chief, firmly refuted the viability of a U.S. Bitcoin reserve.

The 2025 World Economic Forum in Davos emerged as a focal point for debates about integrating Bitcoin into US national reserves.

This idea gained momentum following the inauguration of pro-crypto President Donald Trump on January 20. 

Brian Armstrong Believes a Bitcoin Reserve is the New Gold Standard

The WEF’s conference gained further intrigue when Coinbase CEO Brian Armstrong was quizzed about whether the skyrocketing performance of the TRUMP meme coin could hinder efforts to establish a U.S. Bitcoin reserve. 

Armstrong dismissed the concern, explaining that the initiative, championed by Senator Cynthia Lummis, remains active and well-supported.

https://twitter.com/gazza_jenks/status/1881754705325600852

The Coinbase boss elaborated on his perspective, pointing out that Bitcoin is a superior form of money compared to traditional assets like gold. 

Various items have served as money over the years, but Bitcoin, he argued, stands out for its unique qualities. Like gold, Bitcoin is scarce, but it offers additional advantages: it is more portable, divisible, and practical for real-world use. 

He highlighted its track record and noted that Bitcoin has been the best-performing asset of the past decade. For this reason, he believes governments will increasingly recognize Bitcoin’s value as a store of wealth. 

Armstrong suggested that while initial adoption may start with a small percentage of national reserves, Bitcoin could eventually rival or surpass gold as a key reserve asset.

The Coinbase CEO shared a broader vision for a Bitcoin reserve during the same session. 

He explained the proposal for the U.S. government to begin holding Bitcoin alongside other reserve assets like gold, oil, and rare minerals. He argued that Bitcoin embodies the principles of value preservation over time, making it a logical addition to national reserves. 

This push for Bitcoin as a reserve asset isn’t new. 

The idea gained momentum during the Bitcoin 2024 conference in Nashville, Tennessee, where key figures like Donald Trump, Senator Lummis, and MicroStrategy founder Michael Saylor expressed their support. 

Governor of South African Reserve Bank Questions the Merits of a Bitcoin Reserve

In contrast, South African Reserve Bank Governor Lesetja Kganyago expressed skepticism. He highlighted gold's historical significance as the foundation of the gold standard.

He emphasized the historical significance of gold, which once formed the basis of the gold standard, with currencies pegged to its value. 

Challenging the rationale behind Bitcoin, he posed a series of rhetorical questions: If Bitcoin is considered, why not reserves in platinum, coal, or even commodities like beef, mutton, or apples?

For Kganyago, Bitcoin lacked the historical and intrinsic value that assets like gold represent. The governor also dismissed the likelihood of South Africa adopting a Bitcoin reserve, even if the U.S. pursued such a strategy. 

Kganyago’s critical stance echoes concerns raised by other global figures. 

Former U.S. Treasury Secretary Lawrence Summers recently criticized President Donald Trump’s push for a national Bitcoin reserve as politically driven and impractical.

Despite skepticism, the concept of a Bitcoin reserve is gaining traction globally. Polish presidential hopeful Sławomir Mentzen has pledged to establish a national Bitcoin reserve if elected, aligning his policies with Trump’s pro-crypto stance.

Poland should create a Strategic Bitcoin Reserve.

If I become the President of Poland, our country will become a cryptocurrency haven, with very friendly regulations, low taxes, and a supportive approach from banks and regulators.

BTC to the Moon! pic.twitter.com/izKc4spkkV

— Sławomir Mentzen (@SlawomirMentzen) November 17, 2024

Similarly, French legislator Sarah Knafo has advocated for the European Union to adopt a Bitcoin reserve, arguing it could shield citizens from economic instability and inflation. 

The divide between proponents and skeptics highlights the ongoing debate over whether Bitcoin truly represents the future of national reserves or remains an experimental concept with uncertain outcomes.