Trump Signs Decree Creating Strategic Bitcoin Reserve, Marking Shift in US Policy on Digital Assets
Yesterday, President Donald Trump signed a decree establishing a strategic reserve of bitcoins, marking a significant change in American policy on digital assets. The reserve will be funded exclusively by bitcoins seized in criminal and civil forfeiture cases, ensuring that taxpayers bear no financial burden. The decree provides for a complete accounting of digital assets held by the federal government and prohibits the sale of bitcoins from the reserve, making it a permanent store of value. The United States currently holds approximately 200,000 bitcoins, valued at around $17 billion.
Furthermore, the decree establishes an American digital asset stockpile, managed by the Department of the Treasury, to hold other confiscated cryptocurrencies. This move has not pleased many cryptocurrency investors, who have expressed concerns that not all currencies are suitable for a strategic reserve.
The US commitment to a bitcoin-dedicated reserve is a kind of ratification of digital currency as a significant global asset, somewhat akin to gold.
On the markets, cryptocurrencies plummeted last night. Investors had hoped for a short-term buying spree, but it didn't materialize. The budget-neutral strategy for acquiring additional bitcoins is disappointing. To make matters worse, the cryptocurrency market has been shaken this week by the trade war and inflation concerns. Even for digital assets, general economic uncertainty has a direct impact.
