President Donald Trump has enacted an executive order to create a strategic reserve for Bitcoin, positioning the US among a select few nations to initiate a national stockpile of blockchain assets.
The reserve will consist of cryptocurrencies forfeited to the federal government through criminal or civil proceedings, as outlined by White House AI and cryptocurrency advisor David Sacks in a post on X.
According to Sacks, the US will not liquidate any Bitcoin held in the reserve but will maintain it as a tangible asset.
El Salvador was the pioneer, becoming the first country to create a Bitcoin reserve in 2021. Brazil, Japan, and Switzerland have also contemplated similar initiatives.
Trump, who just four years ago referred to Bitcoin as “seems like a scam,” announced his intentions earlier this week to transform the US into “the Crypto Capital of the World”.
Further announcements are anticipated when the president hosts the inaugural crypto summit at the White House on Friday.
It remains uncertain if the proposed reserve will encounter legal challenges, or if it will necessitate congressional approval.
Sacks mentioned that the stockpile would function as “a digital Fort Knox for cryptocurrency,” comparing it to a Kentucky military base that houses a significant amount of US gold reserves.
Trump’s order also establishes a digital assets stockpile for cryptocurrencies beyond Bitcoin that have been forfeited.
The order mandates a comprehensive accounting of the federal government’s cryptocurrency reserves, which Sacks estimates to include around 200,000 Bitcoin. This amount is valued at approximately $17.5 billion (£13.6 billion) at current market prices.
While the benefits of the new stockpile to the American populace are not yet clear, Sacks assured that it “will not cost taxpayers a dime.”
His suggestion that the US government would not purchase Bitcoin led to a dip of over 5% in the price of the world’s largest cryptocurrency.
Several countries maintain strategic reserves of national assets to diversify government holdings and mitigate financial risks.
The US also possesses a strategic petroleum reserve, while Canada has its own maple syrup reserve.
Earlier this week, Trump disclosed the names of five cryptocurrencies that he wishes to see incorporated into the strategic reserve.
Following his announcement, the market prices of the five coins he specified—Bitcoin, Ethereum, XRP, Solana, and Cardano—experienced a swift increase.
During his presidential campaign, Trump actively sought support from the crypto community, while former President Joe Biden initiated a crackdown on the sector, citing concerns about fraud.
