As talk of a potential Bitcoin (BTC) strategic reserve grows and sovereign states weigh adopting BTC as a reserve asset, crypto custody company Casa recently announced a self-custody option for nation-states called Praetorian.
The new service will provide sovereign powers with security through Casa’s multisignature crypto vaults. Each vault is located in a different jurisdiction and uses strong encryption standards for security. The service also allows for delegation between administrative personnel. Nick Neuman, co-founder and CEO of Casa, wrote:
"Today, a nation can and should take self-custody of its private keys. This gives you full control over your sovereign reserves, and self-custody can be combined with thoughtfully designed tools to better maintain security and continuity through different administrations."
According to Casa, security and self-autonomy are maintained regardless if Casa remains operational as a company, and funds will remain safe in the event the company ceases to exist.
Current US government crypto holdings. Source: Arkham Intelligence
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Talk of BTC strategic reserve grows
During a November appearance on Yahoo Finance, investor and asset manager Anthony Pompliano said that the global race for Bitcoin was well underway.
Pompliano argued that the scarcity of the decentralized asset would trigger game theory mechanics among nation-states, which would compete to get a piece of the 21 million coin pie.
Around the same time Pompiano made his remarks to the media, Senator Cynthia Lummis proposed that the United States Treasury should convert some gold holdings into Bitcoin.
Lummis argued that this would make the effect on the balance sheet neutral instead of paying to acquire 5% of the total Bitcoin supply at current market rates.
On Dec. 11, Vancouver Mayor Ken Sim proposed adopting Bitcoin as a treasury asset for the Canadian city. Sim cited Bitcoin’s ability to hedge against inflation and preserve the purchasing power of the city as a reason to allocate some funds to BTC.
Former Binance CEO Changpeng Zhao also recently told audiences at the Bitcoin Middle East and North Africa (MENA) 2024 conference that it was “inevitable” that China would establish a Bitcoin reserve.
The entrepreneur said that China would be compelled to establish a Bitcoin strategic reserve if the United States established its own under the incoming Trump administration.
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