Actually there are many reasons as you have stated but traditional banks are hesitant to adopt the use of these digital assets believing that their inherent risk over weigh the potential benefits.
Again, the traditional banking or financial institutions should shift from thinking of crypto as a competitor but to that of a partner.
However, i think the traditional banking sector need some awareness or education to change this perception of digital assets.

Agree since we are starting to discuss about off topic things if we continue to discuss about other things.

So better people goes back discussing updates about Bitcoin Strategic Reserve made by countries.

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Also I'm amaze with this seeing that US military leadership support and see the importance of Bitcoin Strategic Reserve as Senator Cynthia Lummis stated.


More details in this source https://cointelegraph.com/news/us-military-leadership-supports-strategic-bitcoin-reserve-sen-lummis

Great to see their support on creating Bitcoin reserve and with growing numbers of officials supporting it there's good chance that more state in US would provably open their doors to pass the bill or build  their Bitcoin reserve in future.

Check Here
 

Congressman Tim Burchett has INTRODUCES a Bill Codifying President Trump's Executive Orders on a strategic Bitcoin Reserve

The Move is still ongoing for a FEDERAL STRATEGIC BITCOIN RESERVE in The US.

French company The Blockchain Group to raise €300 Million to buy more #Bitcoin
Individuals and institutions from all over the world are putting their treasury reserves in Bitcoin, so why would France lag behind?



Source

In my mind, a Bitcoin Strategic Reserve is reserved for nation-states.
As a Strategic reserve in Gold.
Maybe it is me, not speaking English as a mother tongue language, who fuelled the misconception.
In a fully decentralised approach, I will abide by events and won’t remove or frown upon messages regarding obscure corporations claiming Bitcoin Reserves, whether they are strategic or not.

Bitcoin Strategic Reserve, was an idea or word used to pass into law for Nation's or state to start buying or accumulating Bitcoin and holding.
When ever I hear Bitcoin Strategic Reserve what comes to my mind or head is a country or state accumulating Bitcoin and holding it but the truth is even companies can adopt this.

Bitcoin Strategic Reserve is a strategy and that strategy involve accumulating Bitcoin and reserving it as an asset and we all know that assets like this are always held for years by nations or companies, there are some assets that some nations has kept on reserve for many years and is still being reserve till date and this is what adopting a Bitcoin Strategic Reserve is all about.
My thought.

In the real sense, do individuals and private entities even have a reserve? It's nations/states that own reserves. What individuals and private entities have are assets.

London-listed tech firm The Smarter Web Company acquires 45.32 bitcoin (💷 £3,5M) as part of its "10 Year Plan" treasury policy, increasing their total holdings to 168.08 BTC.

https://www.talkimg.com/images/2025/06/10/UdtLfj.png

https://x.com/BitcoinNewsCom/status/1932414191933030493?t=Usl4k_r4YSGr9q9smEb_eA&s=19

Yes they do have a Reserve.
Reserves are assets set aside for specific obligations.
It can also be recorded as a liability in the balance sheet as in the case of Bank reserves.

Like I said above I don't really think it's limited in just being a thing for nations state.
It applies to any entity preparing for scarcity, disruption, or strategic need. For example, a hospital might keep a reserve of critical medical supplies
or a hedge fund could hold a reserve of cash for market crashes.
Gold was held by the Government for economic stability; strategic needs.
Bitcoin can be held by individuals and institutions as a reserve to prepare against inflation and infinite supply of Fiat.

I doubt that USA with their budget deficit and huge debt will buy bitcoin. sure they may hold confiscated BTC but it's not equal to buying new coins. there is an opinion that USA may follow the approach of Strategy and issue government bonds to buy more BTC. but this move could undermine the trust in US treasury bonds so it seems doubtful.

as for me good chances for bitcoin strategic reserve have such countries as Norway, Qatar and others with big budget surplus. Norway's Government Pension Fund Global has 1.4 trillion AUM. maybe they have indirect bitcoin exposure through ETFs but these sums are not significant. also Qatar Investment Authority has about $475 billion AUM and there wasn't information about their investments in BTC.

so my point is that countries with budget surplus could afford buying BTC in big volumes. besides Norway and Qatar it could be Saudi Arabia, UAE, Kuwait, Singapore, Germany and someone else with big finances. with all due respect to Salvador and other not so financially strong countries their volumes aren't significant but their example also matters.