Source: The Economic Times
A Decision Being Widely Criticised
President Donald Trump signed the executive order creating a US Strategic Crypto Reserve on Thursday (March 6th, 2025). Soon, there will be a national stockpile of Bitcoin and other cryptocurrency assets. However, Donald Trump's audacious idea has always been widely criticised. Additionally, this has brought different ideas to different investors and economists.
The basis of this stockpile will only be the Bitcoin seizure from criminal incidents. As far as is known, the United States has seized around $17 billion of Bitcoin in legal cases over the years.
Concerning the making of a crypto strategic reserve, the federal government has also been told to buy more and more bitcoin to popularize the digital currency until it does not start creating extra costs for the taxpayers.
David Sacks confirms the commitment
David Sacks (an author, investor, and entrepreneur) confirmed the news and commitments made by President Donald Trump. He said that for the making of crypto strategic reserve; the order executes or underscores the commitment to making the U.S. the ‘crypto capital of the world.’ he also said that the United States would not sell any bitcoin for now, especially for the reserve and would make it more like ‘a digital Fort Knox.’
Donald Trump confirmed and made many commitments in January concerning the making of crypto strategic reserve, so that, he could help to elevate the crypto industry. He also said that the industry has/had battled a lot in the past with federal regulators for years. Eventually, Mr Trump would organize a crypto summit for the making of the reserve and would be the one holding the first summit like this on Friday (7th March 2025).
Will The Establishment Of the US Strategic Crypto Reserve Work In Long Run?
People are speculating that Mr Donald Trump has taken the making of crypto strategic reserve a personal stake which has further created conflicts with government ethics experts. Last year, Donald Trump had the beginning of a business called World Liberty Financial offering cryptocurrency as WLFI. Before inaugurating this, he started selling so-called meme coins - a kind of cryptocurrency that has a sign of Bitcoin and a celebrity figure on it posing a joke.
The notion “for the making of crypto strategic reserve” gained a lot of attraction last year because Mr. Trump embraced the industry for his campaign trail during the presidential elections in 2024. Many proponents believe that the Bitcoin reserve would chip away at the national debt of the USA which is around $36 trillion. This will also help the United States to dominate the future of the global economy that would run on cryptocurrencies and look-a-like digital currencies.
But sceptics believe that the things looks calculated for them as this would enrich the crypto exxcutives who are or will be in profit as the Bitcoin price is lifting up in the market. They also argue that it is dangerous to link the global economy with the future of currencies and the currency that is highly volatile.
What Should Be Included In The US Strategic Crypto Reserve?
In July 2024 during the Nashville conference, Mr Trump gave a speech concerning the making of a crypto strategic reserve and had promising words with the crowd for the making of the national stockpile. He eventually became more determined while speaking in front of the crowd again last weekend, posting a few words on social media, saying that a reserve will be there consisting of Bitcoin and other lesser-known cryptocurrencies, such as Solana, Cardano, Ether and XRP.
This further created an argument in the town where a few crypto executives say that the reserve should include only Bitcoin, the valuable currency in the market. They further say that the government can create a separate crypto strategic reserve or a stockpile for other assets rather than Bitcoin.
The Making Of The Historic Day
The making of the US Strategic Crypto Reserve and the announcement of Donald Trump on the social media platform excited the crypto investors. The investors say that it should be called a “historic day” and a “massive win” for the country. People like Nathan McCauley, the chief executive of the crypto firm Anchorage Digital say that bitcoin and other digital assets will hold the future and White House for the long run. He also stated that this step should also be adopted by more and more government institutes.
Comments
Post a Comment