The Bitcoin Policy Institute projects the US could accumulate 4.2 million $BTC by 2045 if just 1% of federal tax payments were accepted in Bitcoin under the proposed Bitcoin for America Act.
Key considerations:
📊 Scale: This would represent ~20% of Bitcoin's 21 million supply cap, making it one of the largest sovereign holdings globally.
💡 Mechanism: Essentially creates a 20+ year dollar-cost averaging strategy through tax remittances, smoothing acquisition costs and reducing timing risk.
🔧 Implementation challenges:
• Requires robust IRS infrastructure for crypto custody and processing
• Creates circular demand as taxpayers need BTC holdings to participate
• Revenue volatility could complicate federal budget planning
📈 Market implications:
• Sustained accumulation could provide significant structural buy pressure
• Signals institutional legitimacy for digital assets as reserve instruments
• May catalyze broader sovereign and corporate adoption
While the proposal faces regulatory and political hurdles, it represents a thoughtful framework for how governments might methodically build strategic Bitcoin reserves without disruptive lump-sum purchases.
The question isn't just whether the US will adopt this approach, but whether other nations will move first.
