A legislative proposal in Ukraine to create a strategic Bitcoin reserve has entered the final stages, as the country looks to join the elite group of crypto-holding nations.
Despite the economic instability spurred by the years-long war with Russia, Ukraine is keen on buying Bitcoin. Recent reports suggest the nation has plans to officially meddle with digital assets, widely seen as the future of money.
The local media outlet Incrypted reported on Wednesday that the final details of a bill to establish a strategic Bitcoin reserve are currently being drafted. Specifically, Yaroslav Zhelezniak, the first deputy chairman of the committee on finance, tax, and customs policy, disclosed that he will submit the proposal in no time.
Remarkably, the Ukrainian MP proposed a crypto reserve earlier, but his recent disclosure shows he has narrowed it down to holding Bitcoin alone. Notably, Ukraine holds a substantial amount of Bitcoin acquired through donations but currently has no established law around its management or new procurement plans.
Strategic Bitcoin Reserve Push Has Notable Partner
Notably, the Ukraine strategic Bitcoin reserve push comes in partnership with Binance, the largest crypto exchange globally by trading volume. A Binance spokesperson confirmed the collaboration, revealing it would support the nation in its plan to buy and hold Bitcoin.
Specifically, Kirill Khomyakov, the head of Binance CEE, Central Asia, and Africa, expressed optimism in Ukraine’s strategic Bitcoin reserve creation. He emphasized that the proposal would require a legislative change, which would facilitate regulatory clarity in Ukraine.
Ukraine has faced roadblocks in creating a crypto framework. In April, a key parliamentary committee approved a draft law on digital assets, but the president’s office withdrew the proposal from consideration.
Will Ukraine Make History?
If the proposal is approved, Ukraine would become the first European country to establish a national Bitcoin reserve. The prospect of holding the leading cryptocurrency has gained momentum lately in countries like the Czech Republic and Brazil. However, no European country has yet adopted the trendy financial venture.
Meanwhile, the increasing susceptibility to allocate national wealth to Bitcoin generally emphasizes the growing embrace of the asset and cryptocurrencies.
In April, Binance’s CEO, Richard Teng, disclosed that the exchange is collaborating with multiple countries to create a strategic Bitcoin reserve and draft a crypto regulation, a sign that major announcements are still underway.
The United States remains the only nation officially establishing a national Bitcoin reserve after Donald Trump signed an executive order in March.
Bitcoin Holdings
Ukraine currently holds roughly 46,351 BTC, acquired mainly through donations for defense and humanitarian purposes in its ongoing war with Russia. These donations date back to 2022, and the nation liquidates them for firearms and aid as needed.
Meanwhile, other countries also hold large amounts of Bitcoin and are looking to establish a strategic reserve. China, for instance, holds around 194,000 BTC and recently mulled following the United States’ giant feat to create a Bitcoin reserve. Recall that the Chinese government has banned the asset and its use in the country.
The United States leads with approximately 198,012 BTC, valued at over $15 billion, held in a newly established Strategic Bitcoin Reserve.
Furthermore, the United Kingdom ranks as the third-largest national holder of Bitcoin, with its stash at approximately 61,000 BTC. However, it does not plan to establish a national Bitcoin stockpile like other top holders have teased.
Bhutan, leveraging its green energy resources, holds around 13,029 BTC worth about $1.1 billion, managed through its state-owned Druk Holdings. Meanwhile, despite past IMF concerns, El Salvador continues its pro-Bitcoin stance with 6,175 BTC, valued at $637 million.
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