US President Donald Trump has signed an executive order establishing a “Strategic Bitcoin Reserve,” a government stockpile of digital currency seized in US criminal proceedings. This move is a significant endorsement of Bitcoin, previously viewed with skepticism due to its association with money laundering.
The reserve, likened to a “digital Fort Knox,” will be composed of Bitcoin owned by the Department of Treasury, obtained through forfeiture proceedings. This approach ensures that the reserve’s creation won’t incur any costs for taxpayers.
Key aspects of the executive order include:
- Budget-neutral strategies: The secretaries of Commerce and Treasury will develop strategies to add to the reserve without incurring additional costs for taxpayers.
- Digital Asset Stockpile: A separate stockpile will be created for digital assets other than Bitcoin, also obtained through forfeiture proceedings.
- Accountability and transparency: Federal agencies must provide a full accounting of their digital asset holdings, and the Treasury Department will evaluate the legal and investment framework for managing the reserve.
The establishment of the Strategic Bitcoin Reserve has sparked mixed reactions. Bitcoin prices fell by as much as 5% following the announcement, likely due to disappointment that the program doesn’t involve immediate Bitcoin purchases. However, some experts view this move as a positive development, potentially driving global adoption and demand for Bitcoin.