US Treasury Secretary Backs Bitcoin Purchases as Government Stockpile Surges 200000 BTC
1min read In a notable development for the cryptocurrency sector, the U.S. Treasury Secretary has underscored the government's position on Bitcoin purchases. This stance comes in the wake of an executive order signed by President Donald Trump on March 6, which established a strategic Bitcoin reserve and a digital asset stockpile for the U.S. government. The order empowers the Treasury and Commerce Departments to develop strategies for acquiring additional Bitcoin without relying on taxpayer funds, ensuring that the government's actions do not impose additional financial burdens on citizens.
The executive order includes a provision that prevents the government from selling any Bitcoin deposited into the reserve, effectively treating it as a long-term holding akin to a digital equivalent of Fort Knox. This decision has garnered support from those who believe it will stabilize the government's Bitcoin holdings and potentially boost the cryptocurrency's value over time.
The order also directs the Treasury and Commerce departments to explore ways to increase the government's Bitcoin reserves through budget-neutral strategies. One potential method mentioned is the re-evaluation of the U.S. gold holdings, which could involve selling some gold to purchase Bitcoin. However, this approach is likely to face resistance from gold proponents and may not be feasible in the near term.
Another strategy suggested by experts is the use of existing underutilized computing resources or energy, such as federal data centers, to mine Bitcoin. This method has been successfully employed by the Kingdom of Bhutan since 2019, but its implementation in the U.S. could face significant resistance due to the polarizing nature of Bitcoin mining.
Additionally, the order hints at the possibility of using bonds to acquire Bitcoin, a strategy that has been successfully used by Michael Saylor's business intelligence company to accumulate a significant portion of the Bitcoin supply. Saylor, who is scheduled to attend the White House crypto summit, could play a key role in advising the government on this approach.
Despite the executive order, legislative action may still be needed to make the Bitcoin reserve and any budget-neutral acquisition strategies operational. At present, the U.S. government controls roughly 200,000 BTC, which is worth nearly $17 billion. Previous sales of Bitcoin by the government have been criticized as a loss to American taxpayers, highlighting the importance of the new policy in preserving the value of these assets.
