President Trump Signs Executive Order Creating U.S. Bitcoin Reserve

Image Credit: Reuters

U.S. President Donald Trump signed an executive order on Thursday to create a strategic bitcoin reserve, just one day before meeting with cryptocurrency industry leaders at the White House. The reserve will be funded with bitcoin seized by the government in criminal or civil forfeiture cases, according to David Sacks, the White House's crypto czar. The strategic reserve will also reportedly include other cryptocurrencies, such as ether, XRP, solana, and cardano, all of which saw a market boost after Trump named them earlier this week.

The details of how the reserve will operate or benefit taxpayers remain unclear, though Sacks mentioned that the government would manage the reserve to maximize its value. He emphasized that no bitcoin will be sold from the reserve and that it will serve as a "digital Fort Knox" for bitcoin, often referred to as "digital gold." The reserve's creation has sparked both support and concern, with some crypto enthusiasts viewing it as a way for taxpayers to benefit from the appreciation of cryptocurrency prices, while others criticize it as a giveaway to an already wealthy community.

Following the announcement, Bitcoin briefly dropped over 5%, dipping below $85,000, and was last seen at $88,107. Some critics, like Charles Edwards of Capriole Investments, dismissed the move as an empty gesture, suggesting it was simply a rebranding of existing government-held bitcoin without any new purchases.

Trump's executive order instructs the secretaries of Treasury and Commerce to develop cost-neutral strategies for acquiring more bitcoin without any additional financial burden on taxpayers. Sacks estimated that the U.S. government currently holds around 200,000 bitcoins, with premature sales costing taxpayers approximately $17 billion, though the accuracy of this estimate remains unclear.

Trump’s backing of the crypto industry has also raised conflict-of-interest concerns, as his family has launched cryptocurrency meme coins, and he holds a stake in a crypto platform, World Liberty Financial. Trump's aides maintain that he has transferred control of his business ventures, which are under review by outside ethics lawyers.

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author