Jamie Elkaleh Talks Bitcoin as a National Reserve Asset
In an exclusive interview with FXStreet, Jamie Elkaleh shared his views on Bitcoin as a reserve asset. He discussed how countries can secure Bitcoin holdings and the influence of national Bitcoin reserves on the market.
How Should Governments Secure Bitcoin?
When a country holds Bitcoin in its treasury, the main question is how to do it correctly. Sovereign holders must consider geopolitics, risks, and accountability. States use cold storage, multi-signature wallets, trusted third-party custodians, and audit systems. Global custody providers offer “sovereign-grade” solutions that mix blockchain security with strong controls.
Regulations also play a key role. Countries must fit Bitcoin custody into existing financial rules. In the UK, the approach is permissive but structured. In the US, the SEC keeps crypto custody under traditional regulatory standards. Securing Bitcoin goes beyond key management. It includes governance, transparency, audits, anti-money laundering (AML), and know-your-customer (KYC) processes.
Overall, national Bitcoin custody needs a clear governance model. Institutional users want cryptographic security plus transparency and regulatory trust. This supports accountability at the highest levels.
Impact of National Bitcoin Reserves on Retail Traders
Government Bitcoin buying may affect retail traders indirectly. When states buy Bitcoin, it signals a shift from speculative tech to an infrastructure asset. This change can deepen market liquidity and bring more large players alongside retail investors. Demand moves from speculation to strategic accumulation.
The four-year Bitcoin halving cycle remains relevant. It still influences miner economics and market sentiment. However, sovereign demand could reduce price swings and create steadier growth phases. Retail traders should keep using cycle models but adjust for less volatility.
Benefits for retail investors include more market stability, better infrastructure, and clearer regulations. But big players may act first, and retail investors could react later. Strong risk management and understanding regulations remain essential.
US Bitcoin Reserve Plans and Future Outlook
The US has been slow to develop its Bitcoin reserve plan. Complicated regulations and the need for more infrastructure slow progress. However, a White House Executive Order on March 6, 2025, created a “Strategic Bitcoin Reserve” and “US Digital Asset Stockpile.”
Significant Bitcoin purchases by the US in 2026 are unlikely. Instead, pilot projects and state-level experiments may appear. As countries like the UK, Singapore, and Hong Kong advance their frameworks, the US may increase its efforts for strategic reasons.
The success of US plans depends on solving custody laws, valuation, audits, regulatory alignment, and defining Bitcoin’s role. Any US moves could boost market confidence, speed up regulations, and help crypto join mainstream finance.
