If capitalising on high tech trends is how Malaysia becomes a cash cow, saving the proceeds in an inflation-resistant asset is how it protects it.
In this regard, one of the more innovative strategies for Malaysia could be the adoption of bitcoin as a reserve asset. As global debt levels rise and traditional fiat currencies face inflationary pressures, Bitcoin presents an alternative that could help Malaysia hedge against currency devaluation and diversify its reserves.
Bitcoin, with its fixed supply of 21 million coins, is often touted as “digital gold.” Unlike fiat currencies, which can be printed in unlimited quantities, bitcoin’s scarcity could make it a valuable asset in times of economic uncertainty. By allocating a portion of its reserves to bitcoin, Malaysia could benefit from the potential appreciation of this digital asset, thus strengthening its overall reserve position.
Furthermore, the adoption of bitcoin could signal Malaysia’s forward-thinking approach to financial innovation, potentially attracting tech-savvy investors and positioning the country as a leader in the digital economy. Countries like El Salvador have already made moves in this direction, and while Malaysia’s economy is much larger and more complex, a cautious and well-regulated adoption of Bitcoin could provide significant benefits.
However, it’s important to note that adopting bitcoin as a reserve asset comes with its risks, given its volatility. Therefore, any decision to include bitcoin in Malaysia’s reserves should be part of a broader, well-considered strategy that includes comprehensive risk management.
Malaysia’s RM1.5 trillion debt is indeed a ticking time bomb, but it is not without solutions. Through a combination of fiscal consolidation and reform, becoming a tech powerhouse and the strategic adoption of Bitcoin as a reserve asset, Malaysia can effectively manage its debt crisis and safeguard its economic future.
Source : FMT
Bitcoin is the most important conversation we’re not having
If you’re a retiree concerned about your pension, or a middle-class person worried about your savings and the rising cost of living, this topic has an impact on you.
If you’re a working-class person in the lower income group and concerned about building a better future for your children, or a fresh graduate or undergraduate worried about your future prospects in the economy, this topic, too, has an impact on you.
Yet, there has been a severe lack of the necessary coverage, discussion and attention on this topic.
I am referring to the very thing that humanity has accepted as money.
But what is money?
Why do we use what we do now as money and how will the global civilisation look like if we didn’t use it?
Ultimately, why should one even care?
What if I told you that if we agree to use what I want us to use as money, I can steal anything of value or productivity you may generate without touching a single cent in your digital or physical wallet?
What if I told you I can also enrich someone close to me and impoverish those who disagree with me?
What if I told you the root cause of every problem the world faces today comes down to our collective lack of understanding of the concept of money and what we have all agreed (willingly or otherwise) to use as money?
How would all this make you feel?
Have you ever wondered who decides how much your money is worth? And how much control they have over it?
Ultimately, what if I also tell you that there may potentially be a solution to all these problems but it requires active participation, public scrutiny and transparency?
At the 2024 Nashville Bitcoin Conference (now president-elect) Donald Trump announced plans to create a “strategic national bitcoin stockpile” and a “bitcoin and crypto advisory council” and turn the US into the “crypto capital of the world”.
At the same conference, senator Cynthia Lummis also announced that “over five years, the US will assemble a million bitcoin”.
Trump also said that “there will never be a CBDC (central bank digital currency) while I am president of the US”.
Why?
Why does it seem (to me, at least) like there is a race among global central banks together with the Bank for International Settlements to develop their own CBDC?
Why do BRICS member countries want to set up an alternative settlement currency to replace the US dollar?
In my view, the real world war being waged now is over who will define and determine the new global unit of account – the standard used to measure the value of everything we buy and use.
I would also argue then that if a new unit of account that is centralised, based on debt (riba or usury) and lacks public scrutiny, is globally adopted it could usher in a new era of tyranny and digital dystopia unlike anything we’ve seen in recorded history.
It will enable those who control it unlimited hold over anyone and anything that adopts it.
Dystopian concepts like forced spending, restricted fungibility and social credits (to name but a few) will be commonplace, and that will have an impact on the very fabric of our collective and fundamental human rights.
Imagine your ability to spend money on certain goods were restricted based on personal data or social behaviour ratings, or if access to basic needs was tied to conformity with arbitrary rules.
Through a digitalised debt-based unit of account, those who control it will be able to transfer (steal) the purchasing power from one group and give it to whomever they choose.
This transfer of wealth through inflation of the money supply can be done at a scale beyond what we currently experience and in a much more targeted way.
Without public scrutiny and transparency, decisions can be made and rules can be written without the best interest of the people being taken into account.
Instead, a new unit of account for global adoption must be decentralised in such a way that no single actor or entity can impose undue influence over its network and rules.
For example, a decentralised unit of account – like bitcoin – is governed not by any single entity but by the collective agreement of its users.
Its rules are transparent and immutable, ensuring that no one can manipulate its value for personal gain.
Additionally, a new unit of account has to be resistant to the possibility of value dilution through inflation of the underlying money supply.
This would insulate those who adopt it from having their purchasing power eroded over time.
Further, one has to be given the choice to opt in rather than forced to adopt this account.
As a cautionary note, we must also have additional firewalls to protect the privacy of users from excessive financial surveillance that can have a negative impact on their fundamental human rights.
At the end of the day, the burden and responsibility of this decision and outcome is upon our collective shoulders.
How we choose to act today will have an impact on countless generations to come.
The choice of what we ultimately use as money is far from trivial. It shapes the very balance of power in society.
Will we ignore this critical decision and risk our fundamental freedoms and rights?
Or will we selflessly face it head-on for the benefit of future generations?
Source : FMT
More States, Countries Consider Adding BTC to Their Coffers
There is a growing trend making its way around the world: countries, states and companies are all racing to catch up with it – Bitcoin reserves.
Russia Joins Brazil in National Adoption Efforts
One of the biggest developments in recent times is, of course, that the United States could be adding BTC to its reserves. While President-elect Donald Trump has voiced his support, it’s not clear if this will be easy to actually implement.
Other countries have moved at a faster pace, with Brazil recently introducing a bill that could see the establishment of a sovereign Bitcoin reserve called Sovereign Strategic Bitcoin Reserve (RESBit).
Brazil, with high crypto adoption rates and a large population, is a promising candidate. Another is Russia.
RIA Novosti reports that Anton Tkachev, a State Duma member (the lower house of the Russian parliament), has just submitted a formal appeal to create a Bitcoin reserve. The proposal to Finance Minister Anton Siluanov comes as Russia continues to grapple with international sanctions.
In conditions where access to traditional international payment systems is limited for countries under sanctions, cryptocurrencies become practically the only tool for international trade. The Central Bank of Russia is already preparing to launch an experiment on cross-border payments in cryptocurrency.
Florida, China, Who’s Next?
Not quite a nation-state, but a large US state nevertheless, Florida is said to be joining the illustrious group of governments holding Bitcoin. According to the Florida Blockchain Business Association (FBBA), the Sunshine State is working towards a 2025 implementation.
FBBA President Samuel Armes commented on the importance of investing even small amounts in BTC, acknowledging that pension funds already hold crypto:
Florida would join fellow US state Pennsylvania, which is working on a Strategic Bitcoin Reserve Act.
There are also cities working on adding just a little speck of Bitcoin magic to their town’s portfolio. CNA recently reported that the Canadian city of Vancouver and the Swiss canton Bern are gearing up to stack sats.
And even China may be looking to get in on the action. Changpeng “CZ” Zhao, founder and former Binance CEO, believes there’s a strong case for China to follow the US’s lead.
Speaking at the Bitcoin MENA conference in Abu Dhabi, 9 December, CZ said it’s “inevitable” China will eventually establish a reserve, because Bitcoin is “the only ‘hard’ asset”.
Source : Crypto News
Bitcoin in the US Treasury
Proponents of adding BTC to the US Treasury have argued that Bitcoin, with its capped supply of 21 million coins and decentralized nature, can serve as a hedge against inflation and currency debasement.
Companies such as MicroStrategy and Tesla gained attention for adding Bitcoin to their corporate treasuries, showcasing its potential as a reserve asset. This strategy was driven by the view that Bitcoin could outperform traditional fiat reserves and serve as an uncorrelated asset to hedge against economic uncertainties.
Donald Trump’s victory in the November US presidential elections and his nomination of crypto-friendly Paul Atkins for the Securities and Exchange Commission chair have played a key role in fostering a bullish sentiment in the crypto market, driving Bitcoin’s price to $100,000.
The 2024 Nashville announcement
In Q3 2024, the Trump administration made a groundbreaking announcement in Nashville, revealing plans to allocate a portion of the US Treasury’s reserves to Bitcoin. The move aimed to diversify the nation’s asset base and harness the perceived benefits of digital assets. Specific details included:
- Allocating 2% of Treasury reserves to Bitcoin
- Phased purchases over 24 months to minimize market disruptions
- Custody to be managed by private-sector partners in collaboration with government-regulated institutions.
The announcement sparked intense debate across political and economic circles, with critics questioning the rationale and potential risks, while proponents hailed it as a bold step into the future of finance.
The Bitcoin bill to establish a strategic Bitcoin reserve
Senator Cynthia Lummis introduced the BITCOIN Act of 2024, which proposes the US Treasury establish a national Bitcoin reserve by acquiring 1 million BTC over five years, with annual purchases of 200,000 BTC. This initiative positions Bitcoin as a strategic asset to hedge against inflation, reduce national debt, and strengthen the US’s financial leadership globally.
Investment plan
- The Treasury will invest approximately $76 billion in Bitcoin, acquiring it incrementally over five years to mitigate price shocks.
Secure storage
- Bitcoin will be held in Treasury-managed digital vaults for a minimum of 20 years.
- Custodial measures and partnerships are yet to be disclosed but will emphasize robust security standards.
- Both physical and digital infrastructure with the highest level of security will be used to store Bitcoin.
Hong Kong legislator eyes Bitcoin for fiscal reserves
Hong Kong Legislative Council Member Johnny Ng has announced plans to collaborate with various stakeholders to assess the feasibility and potential benefits of incorporating Bitcoin into the special administrative region’s financial reserves.
He highlighted the importance of considering Bitcoin in strategic fiscal reserves, suggesting that its inclusion could benefit Hong Kong’s economic framework under the right regulatory conditions.
Bitcoin and Web3 for development
Wu’s comments come when Bitcoin and Web3 technologies are gaining traction worldwide. The decentralized nature of Bitcoin, along with its limited supply, has positioned it as a valuable asset in the eyes of many investors.
Ng pointed out that the global awareness of Bitcoin is increasing, making it a crucial element in the discourse on digital assets and their integration into traditional financial systems. The legislator’s initiative is part of a broader effort to accelerate the development of the Web3 ecosystem in Hong Kong.
Web3 represents the next generation of internet technologies, focused on decentralization, blockchain and peer-to-peer interactions. Ng believes that Hong Kong is at a pivotal stage in regulatory compliance and industry development, which could pave the way for a more open and innovative market environment.
Strategic fiscal reserves and compliance
Ng acknowledged in his proposal that thorough research and compliance with existing regulations are essential to ensure the strategic and secure integration of Bitcoin into Hong Kong’s fiscal reserves.
His proposal came in response to United States Republican Party presidential nominee and former President Donald Trump’s speech at the Bitcoin 2024 conference on July 27.
Beyond Bitcoin, Ng’s vision for Hong Kong includes a robust and dynamic Web3 ecosystem. He urged the government to focus on technological innovation and build a supportive environment for Web3 development.
Ng’s advocacy is timely, as Hong Kong has made strides in digital finance and blockchain adoption. The region’s regulatory framework is evolving to accommodate these new technologies, aiming to balance innovation and security.
Source : Coin Telegraph
Brazil: A Law Proposes the Creation of a Bitcoin (BTC) Reserve
A Bitcoin Reserve for Brazil?
Federal Deputy Eros Biondini recently proposed a bold idea: creating a “Strategic Sovereign Bitcoin Reserve” (RESBit) to hold up to 5% of Brazil’s international reserves. At current exchange rates, this translates to over $370 million in Bitcoin—a significant sum that could position Brazil as a forward-thinking nation in the adoption of digital assets.
Proponents argue that this move could provide a buffer against geopolitical risks, diversify the Treasury’s portfolio, and even support Brazil’s upcoming Central Bank Digital Currency (CBDC). It’s a triple benefit, they claim: enhanced financial stability, increased flexibility, and a foundation for digital innovation.
Managing the Reserve: Blockchain Meets AI
If the law passes, the Ministry of Finance would take the lead in managing the Bitcoin reserve. Advanced technologies such as blockchain and artificial intelligence are expected to play a central role in ensuring transparency and robust oversight. The bill also outlines semi-annual reporting to Congress, aiming to strike a balance between leveraging cutting-edge financial tools and maintaining public accountability.
To mitigate potential risks, the proposal includes safeguards to ensure the reserve doesn’t destabilize Brazil’s public accounts. The emphasis on prudent management reflects an understanding of Bitcoin’s volatility and the need for careful integration into national financial systems.
Building a Blockchain-Educated Workforce
One of the more exciting aspects of the proposal is its focus on education. The bill calls for a comprehensive effort to teach blockchain, crypto-economics, and security technologies in universities, technical schools, and research centers. This forward-thinking approach acknowledges the growing demand for expertise in these fields, not only to support the Bitcoin reserve but also to prepare Brazil for a broader role in the global digital economy.
Learning from El Salvador
Brazil wouldn’t be the first country to explore Bitcoin at the national level. The bill draws inspiration from El Salvador, where Bitcoin has been recognized as legal tender since 2021. While the initiative faced challenges initially, it has attracted foreign investment, increased financial inclusion, and diversified the country’s economy.
Deputy Biondini believes Brazil could replicate these benefits. However, unlike El Salvador’s full-scale adoption, Brazil’s proposal focuses on a more cautious integration, using Bitcoin primarily as a reserve asset rather than a widespread medium of exchange.
Russian lawmaker proposes strategic Bitcoin reserve to counter geopolitical challenges
A member of Russia’s State Duma has proposed the creation of a national Bitcoin (BTC) reserve, positioning the crypto as a tool to counter economic sanctions and ensure financial stability, local media reported on Dec. 9.
The proposal, introduced by Anton Tkachev of the Novye Lyudi party, reflects a growing interest in leveraging digital assets amid restricted access to global financial systems. It comes days after President Vladimir Putin made positive comments about Bitcoin during a conference, calling it an unstoppable technology.
In a formal appeal to Finance Minister Anton Siluanov, Tkachev suggested establishing a Bitcoin reserve akin to traditional foreign currency reserves. He argued that cryptocurrencies offer a unique advantage in mitigating risks associated with sanctions, inflation, and currency volatility.
Bitcoin as a Strategic Asset
Tkachev pointed to Bitcoin’s rising valuation, noting its December 2024 price of $100,000 as evidence of its reliability as both a store of value and an investment. While Bitcoin is currently trading around the $97,000 level, it has demonstrated significant resilience and potential for growth, peaking above $103,000 earlier in the month.
The proposal aligns with the Central Bank of Russia’s broader initiatives to integrate digital assets into international payment systems. Tkachev emphasized the importance of developing modern solutions to manage economic challenges, highlighting Bitcoin’s decentralized nature as a safeguard against external financial pressures.
The news comes amid heightened interest in nation-states adopting Bitcoin as a reserve asset for their treasuries. The movement has gained steam in the US in recent months, especially following President Donald Trump’s election win.
The federal US government, as well as multiple states, have initiated legislation to create strategic Bitcoin reserves. However, the plans are still in their early stages.
Global implications
Establishing a national Bitcoin reserve would require policy reforms and collaboration among Russian financial authorities, including the country’s central bank.
If implemented, the initiative could position Russia as a pioneer in adopting cryptocurrencies for national financial strategy. Observers suggest that this move might inspire other sanctioned nations to explore similar avenues to maintain economic stability.
Analysts believe the proposal highlights the shifting role of digital assets in global finance as governments increasingly recognize crypto as an alternative to traditional reserve mechanisms. However, significant regulatory and logistical barriers remain before such a strategy can take shape.
Russia’s Finance Ministry and central bank have yet to issue an official response, but the proposal has already sparked discussions about the evolving role of Bitcoin in geopolitics and international trade.
Elon Musk warns about $35 trillion ‘debt time bomb’: He thinks only Bitcoin ‘horse’ can save Americans
In a recent Trump campaign rally appearance, Tesla CEO Elon Musk raised alarms over the unprecedented scale of the U.S. national debt. Musk emphasized the issue by stating, “Just the interest payments on the debt are 23% of all federal tax revenue,” pointing out that interest payments alone now surpass the Defense Department’s $1 trillion annual budget. He described the situation as a “financial emergency,” a message he later reiterated on X.
Tesla, under Musk’s leadership, has maintained a significant investment in Bitcoin, with approximately 10,000 Bitcoin valued at nearly $800 million.
Bitcoin, sometimes referred to as “digital gold,” has increasingly become a focal point for investors concerned about rising inflation and debt levels. Musk’s vocal support for Bitcoin and Tesla’s large Bitcoin holdings reflect a growing trend among major investors who are looking beyond traditional assets in response to the current economic challenges.
Michael Saylor Explains How a Bitcoin Reserve Could Reduce U.S. Debt by $16 Trillion
According to Saylor, buying one million Bitcoins over the next 5 years would pay off $16 trillion of the national debt, or 45% of the total. This is quite the bold plan and shows just how much of a hedge Bitcoin is. Saylor says embracing digital currency would be good for the US economy.
“A Bitcoin reserve could be one of the best ways to secure America’s future,” Saylor said. A Bitcoin reserve would stabilize the dollar and increase national wealth. His plan is getting a lot of attention in the crypto community with the growing calls for a federal Bitcoin strategy.
Senator Lummis Backs Saylor’s Proposal with New Legislation
Saylor’s plan matches what’s happening in Washington. Earlier this year Senator Cynthia Lummis (R-Wyo.) introduced a bill to have the US accumulate digital assets including Bitcoin in its reserves. Lummis wants the US to buy up to one million Bitcoins and suggests selling off part of the Federal Reserve’s gold reserves to fund the purchase. According to Saylor if this bill passes the US would see a $16 trillion impact on the debt and increased economic stability and reduced foreign debt.
The logic is clear to Saylor who calls Bitcoin “manifest destiny” for the US. “Just as we acquired gold, oil and other strategic assets, Bitcoin should be seen as a modern digital asset that will only go up in value,” he said. The MicroStrategy executive thinks this could set a precedent for other countries to see Bitcoin as a national asset.
The “Trump Max” Scenario: Saylor’s Most Ambitious Vision
In a “Trump Max” scenario Saylor sees the US buying four million Bitcoins which would return up to $81 trillion. He presented this as the ultimate, albeit crazy, way to build national wealth. “If the Trump administration goes all in on Bitcoin we could see an economic renaissance,” Saylor said. “A Bitcoin reserve would change the financial landscape of America.”
Senator Lummis says Treasury should convert gold for Bitcoin reserve
Wyoming Senator Cynthia Lummis is advocating for the United States Treasury Department to convert a portion of its more than 8,000 tons of gold holdings into Bitcoin to establish a BTC strategic reserve.
Lummis told Bloomberg that by converting gold certificates held by the US Treasury into Bitcoin BTCUSD, the immediate effect on the US government’s balance sheet would remain “neutral,” as opposed to spending about $90 billion to purchase the Bitcoin at current market prices.
The senator had previously argued that the Treasury should convert a portion of its assets to purchase Bitcoin for the strategic reserve but had never specified which of the Treasury’s holdings should be sold to acquire more of the digital currency.
When the Strategic Bitcoin Reserve bill was introduced to the Senate, Lummis remarked that establishing the reserve was paramount, “As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights.”
The Coverage Malaysia
