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$17.8 Billion Bitcoin Is Still Sitting in These Government Wallets: Arkham
July 06, 2024
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Data from crypto analytics firm Arkham has revealed that several governments are holding significant amounts of Bitcoin, totaling approximately $17.8 billion at current market prices.

Arkham has highlighted substantial holdings of Bitcoin seized by the United States, United Kingdom, and Germany as a result of criminal cases, while El Salvador has made significant purchases of Bitcoin for its treasury.

United States: $12 billion in Bitcoin reserves

The United States government holds the largest share of Bitcoin, with an estimated $12 billion worth of Bitcoin in its possession.

Much of this cryptocurrency is believed to have been seized in high-profile cases such as the 2013 Silk Road bust and subsequent operations targeting darknet markets.

In 2020, the U.S. Department of Justice seized over $1 billion in Bitcoin related to Silk Road, marking one of the largest cryptocurrency forfeitures in history.

The U.S. has traditionally used auctions to sell seized Bitcoin, with the U.S. Marshals Service overseeing several such events since 2014.

However, recent reports suggest a shift towards more market-based approaches, including over-the-counter (OTC) sales.

The timeline for future sales remains unclear, with the government typically not announcing its plans in advance to prevent market manipulation.

United Kingdom: $3.3 billion Bitcoin holdings

The United Kingdom government holds approximately $3.3 billion worth of Bitcoin, according to Arkham's analysis.

A significant portion of this may be attributed to various law enforcement operations.

In 2021, the Metropolitan Police reported seizing £180 million (around $250 million at the time) in cryptocurrency as part of a money laundering investigation.

While the UK has been less vocal about its plans for these digital assets, the country's tax authority, HM Revenue and Customs (HMRC), has previously auctioned seized cryptocurrency.

The latest information on potential sales or auctions of this substantial Bitcoin holding remains limited, leaving market observers speculating on the UK's long-term strategy for these assets.

Germany: $2.2 billion in Bitcoin reserves

Germany's Bitcoin holdings, valued at approximately $2.2 billion, have recently made headlines.

In February 2024, German authorities announced plans to sell around €1 billion ($1.08 billion) worth of seized cryptocurrency, primarily Bitcoin.

This decision marked a significant shift from their previous approach of holding onto confiscated digital assets.

The German government has opted for a gradual selling strategy through over-the-counter (OTC) trades to minimize market impact.

This move represents one of the largest government liquidations of cryptocurrency to date and is being closely watched by market participants and other governments holding seized digital assets.

El Salvador: $314 Million in Bitcoin Treasury

While not resulting from seizures, El Salvador's $314 million Bitcoin holdings are noteworthy.

Unlike the other countries, El Salvador's Bitcoin treasury is part of a national strategy initiated by President Nayib Bukele.

The country became the first to adopt Bitcoin as legal tender in 2021 and has since accumulated its holdings through direct purchases and mining operations.

El Salvador's approach differs significantly from the other governments, as it represents a strategic investment rather than seized assets.

The country has maintained its Bitcoin position despite market fluctuations, with Bukele occasionally announcing new purchases on social media platforms.

As governments continue to navigate the complexities of holding and potentially liquidating large amounts of Bitcoin, their decisions will likely have significant ramifications for cryptocurrency markets and regulatory frameworks worldwide.

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

This is the cycle of the great onboarding. The distinction between "Web2" and "Web3" is rapidly becoming obsolete. When government data, institutional flows, and grassroots builders all operate on the same decentralized rails, we are simply talking about the internet—a new iteration, yes, but the internet nonetheless: an immutable internet where data is not only published but also verified and distributed in real-time.

Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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