Donald Trump has given a green signal to the US Bitcoin reserve decision, making the dreams of many in the industry come true.
According to the official records, a day before he met with cryptocurrency sector executives at the White House, U.S. President Donald Trump signed an executive order Thursday to create a strategic bitcoin reserve.
In a post on social media site X, millionaire David Sacks, the White House crypto czar, stated that the reserve would be financed using federally owned bitcoin that had been confiscated as part of criminal or civil asset forfeiture actions.
Despite the optimistic news, the price of Bitcoin failed to lift up, trading down. At the press time, the token is trading at $88,165.79, down 3.44% as compared to the same time last day.
US Bitcoin Reserve: What Will it Include?
The official announcement states that Bitcoin that belonged to the Department of Treasury and was seized as part of criminal or civil asset forfeiture actions will be used to fund the Strategic Bitcoin Reserve.
The legal authority of other authorities to move any bitcoin they control to the Strategic Bitcoin Reserve will be assessed.
Additionally, the Strategic Bitcoin Reserve will be kept as a store of reserve assets, and the US will not sell bitcoin deposited into it.
The Secretaries of Treasury and Commerce are permitted to create budget-neutral plans for obtaining more bitcoin, so long as those plans don’t result in new expenses for American taxpayers.
How Will The Bitcoin Reserve Help?
The concept of Bitcoin Reserve has acquired popularity as a possible inflation hedge and a gold-like store of value. By diversifying reserve assets and lowering dependency on fiat currencies, some supporters contend that it could improve national security.
But there are drawbacks, such as the volatility of Bitcoin and the unpredictability of regulations. Bitcoin has already been accepted as legal cash in nations like El Salvador, igniting debates around the world.
Debates over the effects of a Bitcoin Reserve on banking institutions, monetary policy, and overall economic stability would probably arise in the near future as the United States has adopted one.
Trump Signs Orders For U.S. Digital Asset Stockpile
Apart from the Bitcoin Reserve, Donald Trump has created the U.S. Digital Asset Stockpile, which is made up of digital assets that the Department of Treasury owns but does not include bitcoin and that have been forfeited in criminal or civil asset forfeiture actions.
Other than assets acquired through forfeiture actions, the government will not purchase any more assets for the U.S. Digital Asset Stockpile.
Strategies for responsible stewardship, such as possible sales from the U.S. Digital Asset Stockpile, may be decided by the Secretary of the Treasury.