US Creates Strategic Reserve of Crypto: US President Donald Trump on Thursday signed an executive order to create America’s first strategic bitcoin reserve. The decision comes just a day before a meeting with officials of cryptocurrency companies at the White House.
This reserve will include those bitcoins that the US government has acquired under criminal and civil asset seizures. This will not cost the government any extra money and will not put any burden on taxpayers.
America has a treasure of bitcoins.
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US Creates Strategic Reserve of Crypto
According to a media report, the US government has about 200,000 bitcoins, worth about $16.4 billion. Apart from this, the government also has other digital tokens worth $400 million. All these assets have been acquired through seizure in criminal and civil cases.Under Trump’s order, full accounting of these digital assets will now be done and they will be included in the strategic reserve.
What is Strategic Bitcoin Reserve?
Strategic reserve is a reserve that governments keep ready to deal with any critical situation in the supply of vital resources. On the same lines, the US government has decided to create this reserve by recognizing bitcoin as a strategic asset. In this, the seized bitcoins will be stored and when needed, it can be released in the market.
Trump fulfilled his promise
Trump’s “crypto czar” praised the order, saying, “President Trump promised to create a strategic bitcoin reserve and digital asset stockpile, those promises have been fulfilled.” He said that under the new order, the US government will retain about 200,000 bitcoins that were seized in criminal or civil proceedings.
Digital asset stockpile will also be ready
Trump’s order also talks about creating a “US Digital Asset Stockpile”. This will include other digital assets besides bitcoin,Such as Ether, XRP, Solana and Cardano. However, the government will acquire these only through confiscation and taxpayers’ money will not be used to buy them. Also, special strategies will be devised to maximize the value of this fund.
White House crypto czar David Sachs said the reserve will hold cryptocurrencies seized as part of criminal or civil proceedings. The US will not sell any bitcoin deposited in reserve. It will keep it as an asset.
Bitcoin prices fall
However, since Trump’s order, the price of bitcoin has been falling. On Friday, the price of bitcoin fell by more than 5 percent and reached the level of $ 88,201.88. Apart from this, the prices of other digital tokens like Ether, XRP, Cardano and Solana also saw a decline of up to 5 %
President Trump may announce a detailed plan for this strategic reserve and other digital assets at the Crypto Summit to be held at the White House on Friday.
Donald Trump to host first crypto summit
Further details are expected on Friday when the president hosts the first crypto summit at the White House. Trump said four years ago that bitcoin “sounds like a scam” but now plans to make the US the “crypto capital of the world.”
America also keeps petroleum in reserve Some countries also keep strategic reserves of national assets to diversify government holdings. America keeps petroleum reserves. Canada has maple syrup reserves.
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