On November 9, major strides came to light regarding the perception of cryptocurrency when former Binance CEO Changpeng Zhao revealed that key officials from two nations are considering digital currencies as “solid money.” Zhao commented on this evolving viewpoint, stating, “awareness is finally happening.” This revelation signifies a pivotal shift in governmental attitudes toward crypto assets.
How is “Solid Money” Defined?
Solid money, in traditional economic terms, represents currencies that maintain value over time and withstand inflation, often linked to gold and silver. Bitcoin now emerges as a prime digital example of this concept. Hunter Horsley, CEO of Bitwise, highlighted Bitcoin’s supply growth of just 0.84% yearly, marking it as even more limited than gold, which increases at a rate of 1.5% to 2%. Zhao has emphasized the clarity blockchain brings, which simplifies asset verification compared to precious metals.
What Steps Are Governments Taking with Cryptocurrency?
By 2025, Bitcoin and gold could account for approximately 14% of the global money supply. This evolution enhances digital assets from mere investments to integral monetary components. Zhao was named digital asset advisor to both Pakistan’s Crypto Money Council in 2024 and the President of Kyrgyzstan, Sadyr Japarov, in 2025. Pakistan, with 15-20 million crypto users, has established a Bitcoin reserve and initiated virtual asset licenses. Kyrgyzstan has launched a national stablecoin, KGST, and incorporated BNB into its reserves.
The United States boasts a digital asset reserve valued at $34.2 billion, making it the leading state-level holder of cryptocurrency. This strategic Bitcoin reserve was created through a presidential mandate and has accumulated to 326,588 BTC. El Salvador and the UK are also boosting their digital asset holdings, and Galaxy Research foresees at least five more nations joining this year.
“By formally recognizing Bitcoin as ‘solid money,’ these assets transition from being speculative to solidified forms of value worldwide,” experts assert.
- •Bitcoin’s annual supply growth is 0.84%, less than gold’s 1.5%-2% growth rate.
- •By 2025, Bitcoin and gold might form around 14% of the global money supply.
- •The U.S. Strategic Bitcoin Reserve includes 326,588 BTC.
This acknowledgment as “solid money” is anticipated to considerably escalate the valuation of Bitcoin, potentially reaching $200,000 by the close of 2025. Increasing governmental endorsements may not only validate the cryptocurrency market but also significantly fortify its role within global financial systems.