Trump Establishes Bitcoin Reserve as U.S. Stockpiles 200,000 Coins
1min read Donald Trump has recently made a significant shift in his stance on cryptocurrencies, signing an executive order to establish a strategic reserve of Bitcoin and other digital assets. This move marks a departure from his previous dismissal of Bitcoin as a scam and positions the U.S. in uncharted financial territory. The strategic reserve is akin to a national piggy bank, where countries stockpile assets to diversify their holdings and shield against financial chaos and uncertainty. The U.S. already has a Strategic Petroleum Reserve for oil crises, and now Trump aims to create a similar reserve for cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano.
The government plans to hold onto these cryptocurrencies forfeited through criminal and civil cases, rather than purchasing them with tax dollars. This stockpile is being referred to as a "digital Fort Knox," drawing a parallel to the Kentucky military base that guards U.S. gold reserves. The U.S. intends to keep these assets long-term, treating them as serious investments. Additionally, there is a separate "digital assets stockpile" for other forfeited cryptocurrencies, broadening the scope beyond just Bitcoin.
The executive order outlines that the reserve will start with Bitcoin seized by federal authorities, estimated at 200,000 coins. The order also includes Ethereum, XRP, Solana, and Cardano for the stockpile. The U.S. is not planning to sell these cryptocurrencies; instead, it is adopting a long-term strategy, betting on their future values. More details about this initiative are expected to be revealed at the first-ever White House crypto summit, where industry leaders will be hosted by Trump.
Trump's change in sentiment towards cryptocurrencies may be politically motivated. During his campaign, he actively courted the crypto community, promising to make the U.S. "the Crypto Capital of the World." This reserve is seen as a significant deliverable for his supporters, contrasting with the Biden administration's crackdown on crypto due to fraud concerns. Trump is betting that embracing digital assets will garner him allies and potentially provide an economic edge in the future.
This move could legitimize cryptocurrencies, making them more mainstream and attracting more investors. Bitcoin's capped supply of 21 million coins makes it a hedge against inflation, earning it the nickname "digital gold." A reserve could cushion the U.S. 