Last week, the Bitcoin Indonesia group held a meeting with the country’s vice-presidential office to discuss the proposal for a Bitcoin reserve to help strengthen the economy.

The strategic reserve in the market’s leading cryptocurrency is a bold idea, complemented by opportunities in mining and financial education that will drive adoption of the digital asset.

Abundant hydroelectric resources favor Bitcoin mining

During the meeting, various advantages the Asian country has in the context of cryptocurrencies were highlighted, such as its “abundant hydroelectric and geothermal resources that could be used to power Bitcoin mining operations.”

On the other hand, the Bitcoin Indonesia group presented government officials with “long-term price projections, such as the one by Michael Saylor, who predicts that Bitcoin could reach $13 million by 2045 in a base case scenario, and up to $49 million in a bull case.”

Such a decision must be carefully considered, considering that Indonesia is the world’s 16th largest economy, with a GDP of around $1.4 trillion and a population of over 280 million. A Bitcoin reserve “could serve as a diversification tool in an increasingly uncertain global macroeconomic environment.”

Regulatory contradictions

However, it is worth remembering that the country maintains a restrictive stance regarding cryptocurrency payments. Specifically, it has banned its use as a means of payment since 2017, “and recently the Ministry of Finance has doubled the tax burden on traders and miners.” In addition, the Income Tax on cryptocurrency sales on local exchanges increased from 0.1 % to 0.21 %, and the fee for foreign exchanges increased from 0.2 % to 1 %. Mining companies, meanwhile, face a VAT that increased from 1.1 % to 2.2 %.

M.Pino

Source: coinwatcher.com

(Main reference image source: Jannis Lucas en Unsplash)

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La entrada Indonesian government considers creating a national Bitcoin reserve apareció primero en Bitfinance.

Russia could be in favor of the creation of a national reserve of bitcoin, according to a recent proposal by a member of the State Duma.

Official Anton Tkachev has pointed out that the cryptocurrency could act as a safe reserve against inflation and other factors that affect traditional reserves.

If true, Russia would be following in the footsteps of other nations, such as the United States and Brazil, in considering the creation of a national reserve in BTC.

The digital asset is also considered a payment alternative that has already been adopted in dozens of countries.

Tkachev “presented a formal appeal to the Minister of Finance of Russia, Anton Siluanov, suggesting the establishment of a bitcoin reserve similar to traditional state reserves in fiat currencies.”

The State Duma member stressed that cryptocurrencies “offer a unique advantage in mitigating the risks associated with sanctions, inflation and currency volatility.”

Tkachev’s proposal is in line with the Central Bank’s efforts to integrate digital assets into international payment systems.

M.Pino

Source: diariobitcoin

(Reference image source: Getty Images for Unsplash+)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada Russia in favor of creating a national reserve of bitcoin apareció primero en Bitfinance.