Bitcoin Adoption

While some governments have banned Bitcoin, others have moved in the opposite direction — and the gap between the two groups is widening.

El Salvador made Bitcoin legal tender in 2021 and began accumulating it as a national reserve asset. The Central African Republic followed suit briefly, though with less implementation. Bhutan quietly began mining Bitcoin using its hydro power surplus — a state-run operation revealed to hold significant reserves.

In the United States, the political conversation around Bitcoin shifted dramatically in 2024. Multiple presidential candidates expressed support for Bitcoin-friendly policies. The spot ETF approval by the SEC opened institutional access. Discussions of a strategic Bitcoin reserve — comparable to the strategic oil reserve — entered mainstream political discourse for the first time.

In Europe, the MiCA regulatory framework provided legal clarity for crypto assets — not a ban, but a structure. The Gulf states — UAE, Saudi Arabia, Bahrain — moved aggressively to attract Bitcoin and crypto businesses with favourable regulation and zero capital gains tax.

The competitive dynamic is becoming clear. Countries that create clear, predictable regulatory environments attract capital, companies, and talent in the Bitcoin ecosystem. Countries that ban or create uncertainty push that activity elsewhere.

The long-term geopolitical question is whether Bitcoin becomes part of how sovereign wealth is stored — as some nations are beginning to explore — or remains primarily an individual and institutional asset. The early signals suggest this question is being taken more seriously at the government level than at any previous point.

Tomorrow: Bitcoin mining — who does it and where.

— The Daily Bit