On November 9, former Binance CEO Changpeng Zhao revealed that high-level government officials from two different countries described cryptocurrency as “solid money.” Zhao remarked on this declaration with the words “awareness is finally happening.” This statement marks the onset of a significant shift in how states perceive cryptocurrencies.
Solid Money Definition by Governments
In economic literature, solid money refers to currencies that retain their value and resist inflation, typically based on precious metals like gold and silver. Bitcoin is now seen as the digital asset most closely aligning with this definition. Bitwise CEO Hunter Horsley noted that Bitcoin’s annual supply growth is only 0.84%, making it scarcer than gold, whose growth rate ranges between 1.5% and 2%. Zhao has also highlighted the transparent nature of blockchain-based assets compared to the challenges of verifying gold.
By 2025, Bitcoin and gold are expected to constitute about 14% of the global money supply. This ratio reflects the transformation of digital assets from mere investment tools into strategic asset classes with implications for monetary policies.
Government Initiatives on Cryptocurrency
Zhao was appointed as a digital asset advisor to Pakistan’s Crypto Money Council in 2024 and to Kyrgyzstan’s President Sadyr Japarov in 2025. About 15-20 million people in Pakistan, approximately 8% of its population, are cryptocurrency users. In 2025, Pakistan established a Bitcoin reserve and initiated the process of virtual asset licensing. Kyrgyzstan launched its own national stablecoin, KGST, in the same year and incorporated BNB into its crypto reserve.
With a $34.2 billion digital asset reserve, the United States stands out as the largest state-level cryptocurrency holder. Established by a presidential decree in March, the U.S. Strategic Bitcoin Reserve recently reached 326,588 BTC. Countries like El Salvador and the United Kingdom are also expanding their digital reserves. According to Galaxy Research, at least five more countries will add Bitcoin to their reserves by the end of the year.
Experts suggest that governments recognizing Bitcoin and other cryptocurrencies as “solid money” elevates these assets from speculative instruments to globally acknowledged “solid money.” This approach is anticipated to propel the price of the leading cryptocurrency toward the $200,000 range by the end of 2025.