At the start of this year, President Trump announced the creation of a Bitcoin strategic reserve, strengthening the point of view of his administration on cryptocurrency as a viable and precious economic resource that deserves to be preserved.
Committing to making the United States the “cryptographic world capital”, the president hosted a summit on digital assets With the AI and the Crypto Tsar David Sacs at the White House, With guests like the CEO of Coinbase, Brian Armstrong and the co-founder of Chainlink, Sergey Nazarov.
“In recent years, the American government has stupidly sold tens of thousands of additional bitcoins that have been worth billions and billions of dollars if they had not sold them,” Trump said at the event. “From that day, America will follow the rule that each Bitcoiner knows very well: never sell your bitcoin. It’s a little sentence they have. I don’t know if it’s just or not. Who devil knows?
Cryptocurrency experts and those of the industry themselves are uncertain how much the decree of Trump should have an impact to have-some say that it is largely symbolic, while others maintain that it could relaunch a wider global trend of international powers taking more seriously the crypto.
Decompose the functioning of the policy.
What is the Bitcoin strategic reserve?
The main objective of Strategic bitcoin reserve is to maintain Bitcoin as a reserve asset rather than selling the offer that the US government has raised in the procedure for confiscating criminal and civil assets.
Reserve assets are used to Strengthen the currency and the economy of a country and provide a store that the country can operate in emergency periods – similar to the strategic oil reserve created In 1975 under President Gerald Ford On the fear of continuous access to crude oil after the 1973 oil embargo in the organization of oil exporting countries.
In total, the United States has 200,000 bitcoins BUT BY BILNIONS – The value has changed between $ 12 billion and $ 21 billion this year – the biggest detention in all countries. In the past, the American government has systematically sold parts of its Bitcoin participation, resulting in the loss of more than $ 17 billionsaid the Trump administration.
Trump’s decree also reports that the US government should not only become a Bitcoin holder but an active investor. The order directs Treasury and trade secretaries to “develop strategies to acquire additional government bitcoin”, provided that they are “neutral budgetary” and “do not impose additional costs on American taxpayers”.
This is a significant change compared to previous administrations, according to experts in cryptography.
“Almost independent of the question of whether it is a good financial idea, it is absolutely said that it is a U-turn from where we were before,” said Gene HoffmanCEO and president of Blockchain Company Chia Network. “The previous administration tolerate Bitcoin to the best and did everything they could to make it more risky. So, regardless of financial analysis, it is absolutely a political analysis that Bitcoin reserve is the American government saying: no, this is absolutely part of the economy that gold or oil. ”
Haider Rave, Director of World Marketing for the OKX Cryptocurrency exchange, said the Trump administration recognizes a preference among the young generations for cryptographic markets on traditional investment. A recent Yougov study revealed that 42% of generation Z investors have a crypto and only 11% maintain a retirement account.
“The purpose of the strategic reserve, as we see, is to ensure that the American people have the ability to … owning a certain amount of supply,” said referred. “This is an offer that can then benefit and become a coverage for our debt crisis, for inflation and for a number of other economic drawbacks with which we face as a country.”
After all, as the RADIE note, the node of the attraction of Bitcoin has always been in its limited supply: there will never be only 21 million bitcoins in circulation in the world.
It is a transition even for Trump himself-his first mandate presented what Seth Hertlein, vice-president and head of the world policy of the Society of Safety of Digital Assets, Ledger, called an “agnostic” approach. The administration was neither “hostile” nor “united,” said Hertlein.
“The executive decree really said:” We, the government, already have a lot of these things, and we are not going to sell it “,” he said. “At a concrete level, it is not so deep, but it means that we think that this asset has value and, probably on a time horizon, will increase in value, and we want to capture these gains and stop losing them as we have done in the past by selling them.”
What else is in the decree?
Trump also called for the creation of a stock of American digital assets, which includes all digital assets other than Bitcoin confiscated in criminal or civil active procedures. Unlike Bitcoin, Trump’s policy stipulates that the government will not acquire additional assets for the stock and can potentially sell some of these assets.
The order gives 30 days so that agency leaders provide full accounting of all digital assets in their possession, including those who may need to be transferred to the Bitcoin Strategic Reserve or the Stock of US digital assets.
This is part of the administration’s objectives to control its digital assets under a single umbrella.
“Currently, no clear policy exists to manage these assets, leading to a lack of responsibility and an inadequate exploration of options to centralize, secure or maximize their value,” said the information sheet. “Taking affirmative measures to centralize the property, control and management of these assets within the federal government will guarantee appropriate supervision, precise monitoring and a coherent approach to manage the assets of the Cryptocurrency Government.”
Bitcoin reserves the advantages and disadvantages
Some in the world of cryptography were less than delighted by the decision to pursue non -budgetary acquisition strategies. In an article on March 6 on X, Charles Edwards,, Founder of Bitcoin and Digital Asset Hedge Hedge Fund Capriole Investments, Called the order “the most disappointing and most disappointing result that we could have expected this week.”
“But not as surprising”, he continued to write. “No active purchase means that it is just a sophisticated title for Bitcoin Holdings that already existed with the government. It is a pig in lipstick.”
Always, Russy Mug backThe director of investments at AJ Bell, says that a more aggressive acquisition strategy of the government would not be a logical path.
“It would surely be weird for the United States to sell dollars to buy crypto, when the dollar is the reserve currency of the globe and therefore a huge source of influence,” he wrote in a statement. “To constantly throw this influence, the ability to manage a trade deficit without any particular penalty and the potential benefit of interest rate lower, thanks to the constant demand of green tickets, would indeed be strange.”
The potential strategies on the budget to acquire Bitcoin include an option to receive tax and cost payments in Bitcoin, suggested Hertlein, which could even be incident with a discount.
Regarding Trump and the Crypto, there are also ethical questions. Although the president had passed his first ambivalent mandate on digital currencies, he and his family have since waded in the cryptography sector. At the end of March, World Liberty Financial, the Crypto company belonging to Trump and his sons, announced The launch of its own stablecoinbe known as USD1.
Hertlein rejects any conflict of interest.
“It is difficult to establish a link between everything Trump does personally and does not do with digital assets and the fact that we would be richer by $ 17 billion if we had not done this,” he said.
For its part, MLUD considers the desire for the legitimacy of the government industry as a worrying sign.
“Five or 10 years ago, Clarion de Champions of Crypto’s call was that the asset class had nothing to do with governments … and was outside” the system “,” wrote Muggle. “However, crypto buyers now seem to be not only for the approval of the government and the regulations, but the purchase of the government. They cannot have both ways, and you cannot help but think that the current clamor for the purchase of the American government means that crypto is just another tool for precious and rich speculation … rather than a question of philosophy. “
