• Crypto & Funx
• 30 Sep, 2024

According to on-chain data, Mentzen owns 33.7 Bitcoins worth over $3 million.

The adoption of Bitcoin as a strategic reserve asset will help most countries counter their debt crisis.

Following the notable success of pro-crypto leaders in the United States, led by President-elect , other nation states, led by Poland, are also considering a Bitcoin adoption plan. In an X post, Sławomir Mentzen, a Polish politician and entrepreneur, announced that the country will adopt a Strategic Bitcoin Reserve if he is elected in 2025.

As Bitcoin continues to gain more grounds as a globally recognized store of value, Mentzen highlighted that he will make Poland a crypto-friendly market if he is elected as president. Already, the country is bound by the clear crypto regulatory framework dubbed MiCA, which has been adopted by the European Union.

“If I become the President of Poland, our country will become a cryptocurrency haven, with very friendly regulations, low taxes, and a supportive approach from banks and regulators,” Mentzen .

As the chairman of the New Hope party and the co-chairman of the council of leaders of the federal grouping Confederation Freedom and Independence, Mentzen hopes to gain the voters’ attention through the crypto way. According to a report by Statista, the cryptocurrency market in Poland is expected to reach 7.9 million users by 2025, out of the 37 million people.

Bitcoin as a Hedge against Debt Crisis

The adoption of Bitcoin by nation-states was kickstarted by El Salvador, which currently holds 5.93K BTCs worth over $549 million, and the Royal Government of Bhutan, which holds 12.2K BTCs worth over $1.1 billion. Already, El Salvador has registered a notable improvement in its bonds market and has not defaulted on its external debts.

The United States government intends to pass the Bitcoin Act, which proposes that the country will purchase 1 million BTCs in five years. According to Michael Saylor, founder of (NASDAQ: MSTR), the United States could reduce its national debt by over $16 trillion if it adopts Bitcoin as a reserve asset.

Although the United States boasts the highest GDP in the world, the country spends more than it earns. The country’s debt recently surpassed $36 trillion for the first time in history, thus influencing the creation of the DOGE program led by Elon Musk to enhance the government’s efficacy.

If the United States adopts Bitcoin as a reserve asset, other nation-states will follow the same path. Moreover, more than 19 countries have a debt-to-GDP ratio above 100 percent including Japan and Singapore.

Market Impact

Bitcoin price has significantly benefited from the mainstream adoption led by . The flagship coin is on the verge of reaching the much anticipated psychological target of about $100K for the first time in history following the recent bullish momentum.

Moreover, Bitcoin’s weekly Relative Strength Index (RSI) has surged above the 70 percent level for the first time since April this year.