US President Donald Trump has officially announced the creation of a Strategic Bitcoin Reserve using assets seized by federal agencies. In addition, the Trump administration's first crypto summit will be held at the White House this Friday to reaffirm the momentum behind this initiative.
Trump has signed an executive order formally establishing the creation of a Strategic Bitcoin Reserve and a Digital Asset Reserve.
According to the post by David Sacks, White House cryptocurrency and AI czar, The reserve will use digital assets that have been seized by federal agencies in operations against illicit activities. This is an initiative that seeks to position the United States as a key player in the growing cryptocurrency market, while seeking to maximize the value of these assets without resorting to their sale.
BUY BITCOINSacks stressed that this move reflects a significant shift in the government's strategy regarding cryptocurrencies, moving from a regulatory stance to one of active market participation.
The United States Strategic Bitcoin Reserve is formalized
The Bitcoin Strategic Reserve is the central component of the executive order signed by Trump on March 6. According to Sacks, this reserve will be dedicated exclusively to the accumulation and preservation of Bitcoin, the most well-known cryptocurrency with the highest market capitalization.
Initially, this strategic reserve will be funded by confiscated bitcoins held by the government, amounting to about 200.000 BTC, according to Sacks' estimates.
The signing of this executive order marks a turning point in the US government’s relationship with Bitcoin and cryptocurrencies. While in the past the focus was on regulating and policing the use of these currencies, the focus has now shifted to active market involvement. By accumulating Bitcoin, the government is seeking to secure a strategic position in the digital economy, which could provide both economic and geopolitical advantages.
In addition, the creation of this reserve contributes to legitimize Bitcoin as a serious asset class with long-term value. Like gold or foreign exchange reserves held by central banks, the Bitcoin Strategic Reserve acts as a backstop for the country's digital economy. Therefore, this measure could foster greater confidence among investors, both institutional and retail, as well as promote the adoption of cryptocurrencies in different sectors.
No cost to taxpayers, Sacks said
One of the most notable features of this initiative is the use of digital assets confiscated by the government to fund the Strategic Bitcoin Reserve. Instead of turning to taxpayers or selling public assets, the government plans to use the seized bitcoins in operations against organized crime.
“The Reserve will be capitalized with Bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a cent.”, the cryptocurrency tsar pointed out.
In this way, cryptocurrencies that have been seized by agencies such as the FBI will be deposited in the country's strategic reserve, rather than being sold on the open market. Over time, as the value of Bitcoin increases, these assets could become a significant source of wealth for the United States.
Sacks also said that agencies such as The Treasury Department and the Commerce Department will be free to submit their own budgets to fund additional bitcoin acquisition and digital assets to strengthen established reserves.
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The no-sell pledge: US takes a long-term approach
The executive order signed by Trump explicitly states that assets deposited in the Bitcoin Strategic Reserve will not be sold. For HODLers and the community at large, this is a fundamental commitment to ensure the long-term stability and growth of the reserve and BitcoinBy not selling bitcoins, the government avoids interfering in the market and maintains a position of trust between investors and cryptocurrency users.
“Premature sales of bitcoin have already cost American taxpayers more than $17.000 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings.”, Sacks said.
Additionally, this decision reflects a strategic vision in which Bitcoin is considered a long-term investment, rather than a liquid asset to be used in the short term. By keeping bitcoins in reserve, the government is betting on the growth potential of the cryptocurrency, which could generate significant economic benefits in the future.
Likewise, this commitment contributes to reinforcing the perception of Bitcoin as a safe and stable asset. As more governments and institutions adopt cryptocurrencies, their value and widespread acceptance will tend to increase. The United States Strategic Bitcoin Reserve thus positions itself as a pillar in this global adoption process.
BUY BITCOINTowards the transformation of the country into the World Crypto Capital
With this initiative, Trump is laying the groundwork for making the United States an undisputed leader in the global cryptocurrency market. The creation of the Bitcoin Strategic Reserve not only strengthens the country's position in the digital economy, but will also attract talent, investment and innovation.
The executive order also contemplates the possibility of expanding the reserve beyond Bitcoin, including other digital assets such as Ethereum, Solana, Cardano, and XRP mentioned by Trump in past statements. The addition of other cryptocurrencies and digital assets will allow the government to diversify its market exposure and take advantage of the broader opportunities offered by blockchain technology, although this diversification approach has been criticized by several experts and industry leaders.
On the other hand, this measure could also have a significant impact on global cryptocurrency governance. By positioning itself as a key player in the market, the United States will be able to influence the definition of international regulations and standards for cryptocurrencies, and contribute to the creation of a safer and more transparent environment for all market participants.
Finally, Sacks emphasized that the signing of this executive order will result in a complete audit to determine the actual amount of cryptocurrency currently held by the government.
With this reservation, the United States is one step closer to becoming the world capital of cryptocurrencies, ensuring its leadership in a sector that promises to revolutionize finance and technology in the 21st century.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
