The idea that governments might be building infrastructure around Bitcoin rather than opposing it reflects a significant shift in how public authorities view and interact with cryptocurrencies. Instead of treating Bitcoin solely as a threat to traditional financial systems, many governments are increasingly recognizing its potential as a tool for innovation, economic development, and financial inclusion. This evolving stance is visible in various initiatives worldwide where governments are actively integrating Bitcoin and blockchain technology into their economic and regulatory frameworks.
One of the most prominent examples is El Salvador, which became the first country to adopt Bitcoin as legal tender. The government, led by President Nayib Bukele, has not only legalized Bitcoin but is also building infrastructure to support its use. This includes plans for Bitcoin City, a new urban development powered by geothermal energy from a nearby volcano, designed to host Bitcoin mining operations sustainably. The government has also issued “Volcano Bonds” to fund this project and to purchase Bitcoin, signaling a long-term commitment to integrating Bitcoin into the national economy. Despite some public skepticism and financial market volatility following these moves, El Salvador’s approach exemplifies how a government can build infrastructure around Bitcoin to foster economic growth and innovation[1].
Beyond El Salvador, institutional adoption of cryptocurrencies, including Bitcoin, is accelerating globally. Major financial institutions such as Citigroup, Fidelity, JPMorgan, Mastercard, Morgan Stanley, and Visa are now offering or planning to offer crypto products directly to consumers. This institutional embrace is supported by regulatory clarity, such as the bipartisan GENIUS Act in the United States, which provides a legal framework for stablecoins and other crypto assets. These developments indicate that governments and regulators are not only tolerating but actively facilitating the integration of crypto into mainstream finance. Payment platforms like PayPal and Shopify are also building infrastructure to enable daily crypto transactions, further embedding Bitcoin and other cryptocurrencies into the economic fabric[2].
Governments are also exploring blockchain technology for broader applications beyond Bitcoin itself. For example, China’s Digital Yuan is already in use for public transport, salaries, and cross-border trade, while the European Central Bank is finalizing the Digital Euro for retail payments and government disbursements. These digital currencies are programmable, allowing governments to automate tax collection and enforce specific uses of funds. The United States is focusing on regulated stablecoins like USDC and PYUSD, integrating them with treasury management and tax reporting tools. By 2026, projects like the Digital Dollar Project aim to enable instant international settlements between enterprises and government agencies. These initiatives demonstrate that governments are building digital currency infrastructure that complements or coexists with Bitcoin and other cryptocurrencies, rather than opposing them outright[3].
In addition to national digital currencies, governments are engaging with Bitcoin mining and crypto infrastructure development. For instance, Japan has seen government-backed Bitcoin mining initiatives, which could lead to more structured regulatory environments and encourage innovation in the crypto space. Similarly, U.S. states like Wyoming are adopting crypto-friendly laws and exploring stablecoin issuance, focusing on stability and practical utility. These efforts show a trend where governments are not only regulating but also actively participating in the crypto ecosystem to harness its benefits while managing risks[6][8].
Bitcoin’s decentralized and censorship-resistant nature also appeals to governments and organizations interested in financial sovereignty and human rights. Some governments and foundations support Bitcoin infrastructure to empower individuals in repressive regimes, providing tools for secure, censorship-resistant transactions. France, for example, has adopted a Bitcoin reserve strategy to reduce reliance on centralized financial systems and dollar-dominated stablecoins, aiming to strengthen monetary independence and foster domestic crypto infrastructure. The Human Rights Foundation funds projects that enhance Bitcoin’s privacy and security features, enabling activists worldwide to operate safely in hostile environments[4].
The growing government involvement in Bitcoin and crypto infrastructure is also reflected in the financial strategies of crypto treasury companies and institutional investors. These entities leverage Bitcoin’s unique properties, such as its fixed supply and proof-of-work consensus, to create investment products and generate yields through staking and other mechanisms. Regulatory developments, like the clarification that some crypto assets are not securities, have eased administrative burdens and encouraged more institutional participation. This institutional momentum further incentivizes governments to build supportive infrastructure to attract investment and innovation[5].
In summary, governments around the world are increasingly building infrastructure around Bitcoin and related blockchain technologies rather than opposing them. This includes legalizing Bitcoin as currency, developing sustainable mining operations, integrating digital currencies into public finance, creating regulatory frameworks for stablecoins, and supporting crypto innovation for financial sovereignty and human rights. These efforts reflect a recognition that Bitcoin and blockchain technology can be powerful tools for economic growth, financial inclusion, and technological advancement when integrated thoughtfully into government policy and infrastructure.