U.S. President Donald Trump has made a significant move by signing an executive order to create a strategic bitcoin reserve and a digital asset stockpile. This order comes as a surprising shift, given Trump’s previous skepticism about cryptocurrency.
The reserve will utilize bitcoin and other digital assets that the federal government has seized during various legal proceedings. The aim is to manage these assets without imposing any costs on taxpayers. Entrepreneur David Sacks, who works at the White House, stated that the plan is designed to ensure that establishing this reserve won’t cost the public a dime.
The Secretaries of Treasury and Commerce are tasked with finding budget-friendly ways to acquire more bitcoin. They cannot exceed expenses that would affect taxpayers. This setup is significant because it puts the U.S. ahead in the global race to establish a strategic national reserve for bitcoin, which has a limited supply.
Currently, the U.S. government holds a considerable amount of bitcoin but has not optimized its use as a secure store of value in the financial system. The executive order emphasizes the importance of managing digital assets wisely, just as the government does with any other resource. Premature sales of bitcoin have reportedly cost taxpayers over $17 billion, making the careful management of these assets crucial.
David Sacks estimates that the U.S. government owns around 200,000 bitcoins. He compared the new reserve to a “digital Fort Knox,” showcasing bitcoin’s potential as a form of digital gold. The executive order also mentions that a digital asset stockpile will include other types of digital assets seized through legal proceedings, without acquiring more beyond those sources.
After the announcement, bitcoin’s market experienced a slight drop. Analysts noted that investors were hoping for broader purchases by the government, leading to disappointment. However, experts believe this move is essential for the long-term legitimacy of bitcoin as an institutional asset. It marks a pivotal moment in how major economies view cryptocurrency.
What makes this development even more interesting is Trump’s previous stance. In 2019, he criticized cryptocurrencies as unstable and linked them to illegal activities. Now, as he runs for president again, he has pivoted to embrace crypto, declaring himself the “crypto president.” The new administration has plans to halt ongoing investigations into crypto-related companies from the previous administration, further solidifying this shift.
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