Indonesia could add Bitcoin (BTC) to its national reserves, after the Vice President's office and Bitcoin Indonesia, the largest BTC community in Asia, held a meeting to discuss digital assets and reserve strategies.
During the meeting, senior officials from the Indonesian Vice President's office assessed the potential of Bitcoin as a strategic reserve asset to support the country's long-term economic stability.
Themes discussed included the use of Bitcoin mining as a form of reserve asset, as well as the holding of BTC as a hedge against inflationary pressures and volatility in the global financial system.
Bitcoin As Reserve Asset
It was reportedly Bitcoin Indonesia that requested the meeting, to update Indonesian officials on macroeconomic trends to consider, including changing reserve strategies, inflationary concerns, and the increasing adoption of cryptocurrencies by nations.
The Indonesian officials reportedly expressed interest in further education on the asset class. Some of them also reportedly asked questions about Bitcoin's price forecast until the country's centenary of independence, scheduled for 2045.
Currently, Indonesian reserves include mainly gold, US dollars and bonds. The inclusion of Bitcoin would represent a move by the government towards digital assets, similar to what El Salvador and Bhutan have done, which have used state purchases and mining to accumulate BTC.
The meeting took place as other countries are accelerating their Bitcoin-related strategies. The United States, for example, established a Strategic Bitcoin Reserve earlier this year, which has grown to nearly 200,000 BTC, seized from criminals and sanctioned entities.
Many US states, including Texas, are also developing plans to create their own BTC reserves, independent of the federal government.
El Salvador has rapidly increased its BTC reserves to over 6,000 BTC. Bhutan has built one of the largest sovereign Bitcoin reserves through mining.
Kazakhstan said it is in the process of reviewing investment plans to include ETFs on Bitcoin and blockchain technologies. Pakistan has recently promoted plans to allocate surplus energy to BTC mining, as well as valuing it as a reserve asset.
Indonesian officials are now considering a possible change in the composition of their reserves. They will consider whether and how digital assets could benefit in a rapidly changing global economy.
The meeting's presenters reportedly suggested that the integration of Bitcoin could take place gradually, with limited holdings or mining activities, without replacing traditional reserve assets.
The Indonesian officials are now considering a possible change in the composition of their reserves.
