White House Confirms Bitcoin Reserve Plan Under Trumps Order
Key Takeaways:
- The U.S. government establishes a Strategic Bitcoin Reserve using forfeited assets.
- The Reserve aims to prevent taxpayer losses and maintain Bitcoin as a store of value.
- A Digital Asset Stockpile will manage seized crypto assets beyond Bitcoin.
US President Donald Trump just signed an Executive Order to create a Strategic Bitcoin Reserve, a radical shift in US government policy towards cryptocurrencies.
It will be built using seized BTC received through criminal or civil forfeitures at no taxpayer cost. This move places Bitcoin as a store of value in the long term and ensures that digital assets held by the government will be kept strategically and not be cashed in prematurely.
Estimates place federal holdings at approximately 200,000 BTC, even though a full audit has never been conducted. The Executive Order demands a full review to determine the actual holdings.
The decision to hold back and not to sell it comes in an attempt to correct previous mistakes that resulted in massive financial losses. Its reported that previous sales of BTC have resulted in it losing a combined value amounting to $17 billion, and its apparent that a new strategy is needed.
U.S. Digital Asset Stockpile Initiative
Along with a Reserve for Bitcoin, the order establishes a U.S. Digital Asset Stockpile to manage other cryptocurrencies that have been seized.
This stockpile, to be administered by the Treasury Department, will consist entirely of digital assets obtained through legal forfeitures. No new assets will be bought in addition to those seized, and therefore, the initiative will be budget-neutral.
The government has also ordered Secretaries of Treasury and Commerce to explore means to buy more BTC without making American taxpayers bear extra cost. The move fits into a broader strategy to integrate digital assets into national financial planning with robust regulation.
U.S. Bitcoin Acquisition Strategy May Yield Trillions in Returns
On March 5, Michael Saylor, co-founder of MicroStrategy and a long-time Bitcoin advocate, has emphasized the significance of establishing a strategic Bitcoin reserve. According to him, Bitcoin represents more than just an asset; it serves as a decentralized financial network that could secure the U.S. economy in a rapidly evolving digital landscape.
Saylor has compared the initiative to such historic purchases like the Louisiana Purchase and the purchase of gold reserves, which previously have returned enormous amounts to the country.
The U.S. could transform the global financial system by making it a leader in the cryptocurrency space. Experts in the industry believe that purchasing as much as 1 million Bitcoins in the next five years would unlock tremendous economic value and could return trillions.
It would cement U.S. financial dominance and prevent foreign nations, such as China, from taking control of the digital currency arena.
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Read more: https://www.tronweekly.com/white-house-confirms-bitcoin-reserve-plan/
Text source: TronWeekly
