What, a country saving Bitcoin? Kazakhstan is considering cryptocurrency as national reserve!
Hello everyone! I'm Joe, a specialist writer who supports "First Time Blockchain".
Have you ever wondered what a country has as its "savings"? Usually, it is foreign currency such as "gold" or "US dollar". But what if a country hasBitcoinWhat if you started saving money? Today, we'll explain in an easy-to-understand way some news that has come out of Kazakhstan, a Central Asian country, that gives us a glimpse into this future!
What exactly are "national reserves"?
To understand this news, firstNational ReservesLet me briefly talk about "foreign exchange reserves (officially called foreign exchange reserves)."
This is a "Emergency money box" In the unlikely event that the economy becomes unstable or the value of the country's currency starts to fall, this reserve is used to protect the economy. It's like a talisman for the country.
This piggy bank usually contains the following:
- Gold: It has a stable value since ancient times and is a symbol of trust.
- Foreign currency such as US dollar: It is a currency (base currency) that can be used all over the world, so it is reassuring to have it.
The government carefully stores these "assets that can be relied upon in times of emergency."
Kazakhstan to add Bitcoin to reserves? What it means
Now, on to the main topic.Central Bank of KazakhstanThe news is that the Central Bank of Japan (the central bank, which is the heart of the country's monetary system, similar to the Bank of Japan in Japan) is planning to add virtual currencies such as Bitcoin (also known as crypto assets) to this important "national reserve"!
This is really amazing. Because the country has officially declared "Bitcoin is an asset worth holding as a nation, just like gold or dollars." Because we are willing to acknowledge that.
Until now, it was common for individuals and some companies to hold Bitcoin for investment purposes. However, if a country holds it as a "reserve," the scale of the story is completely different. This is because Bitcoin is not simply a target for speculation (aiming for short-term price increases),A globally trusted store of valueThis is a big sign that people are starting to see it as a
By the way, Kazakhstan is theMiningIt is also known as a country where bitcoin (the process of using computers to solve complex calculations to issue new bitcoins and approve transactions) is very popular. That may be why they are trying to take such a bold step ahead of other countries.
Why is this movement emerging now?
The background to this is:Institutional investors enter the market" There is a global trend.
Institutional investors are professional investors who handle huge amounts of money, such as banks, insurance companies, pension funds, etc. Recently, these professionals have started investing in Bitcoin one after another.
As large organizations take action, the Bitcoin market will become more mature and more trustworthy. Countries like Kazakhstan have begun considering using cryptocurrencies as reserve funds, which is a move that is part of the global trend of improving the social status of virtual currencies.
Joe's comment
Wow, this is heartwarming news that the time has finally come for countries to consider using it as a reserve fund. Bitcoin, which has often been seen as "something for a few tech enthusiasts," may be a historic turning point where it will be fully integrated into the global economic system. We can't take our eyes off Kazakhstan's future developments!
This article is based on the following original articles and is summarized from the author's perspective:
Kazakhstan Plans To Establish Bitcoin and Crypto
Reserve