Governments around the world are actively exploring and testing Central Bank Digital Currencies (CBDCs), with over 130 countries advancing projects in this area. This global push raises questions about whether governments might be selling or “dumping” Bitcoin as part of their preparations for CBDC rollouts. The idea behind this speculation is that governments could be offloading Bitcoin holdings to influence the crypto market or to fund CBDC development and deployment efforts.
Several factors contribute to this discussion. First, some governments have accumulated significant cryptocurrency reserves through seizures or asset forfeiture. For example, the United States Congress passed the Bitcoin Act of 2025, which established a Strategic Bitcoin Reserve containing about 200,000 coins valued at roughly $22 billion. This reserve, along with a smaller Digital Asset Stockpile including other cryptocurrencies like Ether and stablecoins, is now part of the official U.S. reserves. The government has the capacity to influence Bitcoin prices by expanding or contracting these reserves, though the exact mechanisms remain undisclosed. This suggests a strategic approach to managing crypto assets that could intersect with CBDC initiatives[2].
At the same time, central banks are actively researching and piloting CBDCs. The European Central Bank, for instance, has been developing the digital euro since 2021 and is currently in a preparation phase for testing. Other major economies such as China, Nigeria, and the Bahamas are also leading in CBDC development. These digital currencies are designed to serve as government-backed digital money, potentially offering a more stable and regulated alternative to decentralized cryptocurrencies like Bitcoin[1][2].
The relationship between CBDCs and cryptocurrencies is complex. On one hand, CBDCs could challenge the decentralized ethos of cryptocurrencies by providing a government-controlled digital currency that might reduce the demand for Bitcoin as a medium of exchange. On the other hand, CBDCs might increase overall digital asset adoption by familiarizing users with digital wallets and blockchain technology, potentially benefiting cryptocurrencies indirectly. Some experts argue that CBDCs will be used primarily for everyday transactions, while cryptocurrencies like Bitcoin will remain investment assets[1].
Regarding the notion of governments “dumping” Bitcoin to test CBDC rollouts, there is no direct public evidence that governments are deliberately selling large amounts of Bitcoin specifically to manipulate the market in preparation for CBDCs. However, the existence of government-held crypto reserves and the strategic management of these assets imply that governments have tools to influence the crypto market if they choose. The U.S. government’s ability to boost crypto prices by expanding its reserves, as mentioned in the Bitcoin Act of 2025, indicates a level of active engagement with crypto assets that could be related to broader digital currency strategies[2].
Moreover, some central banks are experimenting with cryptocurrencies alongside CBDCs. For example, the Czech National Bank purchased $1 million worth of Bitcoin and other digital assets to test custody, security, and anti-money laundering processes. This move signals growing institutional confidence in digital assets and suggests that some governments are exploring how cryptocurrencies and CBDCs might coexist or complement each other rather than viewing them as strictly adversarial[4].
Regulatory developments also play a crucial role. In the United States, recent legislation and executive orders have shaped the digital asset landscape by clarifying regulatory jurisdictions and prohibiting the Federal Reserve from issuing a CBDC, at least temporarily. This regulatory environment influences how governments interact with cryptocurrencies and CBDCs, potentially affecting decisions about managing government crypto holdings[2][3].
In summary, while governments are heavily involved in CBDC development and hold significant cryptocurrency reserves, there is no clear public proof that they are systematically dumping Bitcoin solely to test or prepare for CBDC rollouts. Instead, governments appear to be strategically managing their crypto assets as part of a broader digital currency and financial policy framework. This includes experimenting with both CBDCs and cryptocurrencies to understand their roles in future financial systems, balancing regulatory concerns, market stability, and technological innovation[1][2][4].