“I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet. And we're taking historic action to deliver on that promise,” said President Donald Trump at the White House. Indeed, President Trump recently signed an executive order creating a Strategic Bitcoin Reserve that will treat bitcoin as a reserve asset.
“And this will be a virtual Fort Knox for digital gold to be housed within the United States Treasury. That’s a big thing.”
The Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings, explained President Trump.
“The federal government is already among the largest holders of Bitcoin, as you know, really one of the largest holders in the world, with as many as 200,000 Bitcoin obtained via civil law and various other forms of law, including enforcement actions. These existing holdings will form the foundation of the new reserve.”
“The United States will not sell bitcoin deposited into this Strategic Bitcoin Reserve, which will be maintained as a store of reserve assets.” Indeed, “premature sales of bitcoin have already cost U.S. taxpayers over $17 billion,” the White House noted.
The executive order authorizes the Secretaries of Treasury and Commerce to develop strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.
“Bitcoin, the original cryptocurrency, is referred to as ‘digital gold’ because of its scarcity and security, having never been hacked. With a fixed supply of 21 million coins, there is a strategic advantage to being among the first nations to create a Strategic Bitcoin Reserve,” the White House explained.
“Taking affirmative steps to centralize ownership, control, and management of these assets within the Federal government will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings. This move harnesses the power of digital assets for national prosperity, rather than letting them languish in limbo,” the White House noted.
President Trump has consistently advocated for a forward-thinking approach to crypto, stating: “I am very positive and open-minded to cryptocurrency companies, and all things related to this new and burgeoning industry. Our country must be the leader in the field.”
