US President Donald Trump. |Photo source: Reuters
President Donald Trump signed an executive order on March 7, 2025 (March 7, 2025) that established a reserve of Bitcoin, a key sign of cryptocurrencies’ journey toward a possible mainstream reception.
According to Mr. Trump’s “Crypto Tsar” David Sacks, the U.S. government will retain 200,000 bitcoins that have been occupied in criminal and civil lawsuits, according to Mr. Trump’s new order.
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“The United States will not sell any bitcoin stored in the reserve. It will be saved as a store of value. Sax said on social media that the reserve is like a digital Fort Knox of a cryptocurrency called “digital gold.”
The executive order requires “full accounting” of government bitcoin holdings, which Sax said has never been fully reviewed. He added that over the past decade, the U.S. government has previously sold about 195,000 bitcoins for $366 million. He said that if the government does not sell these Bitcoins, the value of these Bitcoins will be about $17 billion.
Mr Sax said the order allowed the Treasury and the business sector to “develop budget-neutral strategies to acquire other bitcoins.”
Once a few years ago skeptics said Bitcoin “looks like a scam”, and Mr. Trump embraced digital currencies and leaned towards his unofficial role as “cryptocurrency president” that could both help the cryptocurrency industry and enrich himself and his family. Wealthy players in the cryptocurrency industry feel unfairly targeted by the Biden administration, who have worked heavily to help Mr. Trump win last year’s election.
Building Bitcoin reserves is one of several crypto-related commitments Trump made during his campaign last year. Mr. Trump also urged Congress to pass industry-friendly legislation, under his administration, the SEC has begun to revoke enforcement actions taken against certain major crypto companies. On Friday, Mr. Trump will hold many key industry leaders at the White House’s “crypto summit.”
Bitcoin is the oldest and most popular cryptocurrency. Founded in the 2008 financial crisis against anonymous people or people, Bitcoin thrives from experiments with liberal crypto volunteer enthusiasts to become an asset with a market capitalization of about $1.7 trillion. While it is not a way to pay for daily work, Bitcoin has made popularity a store of value rather than controlled by banks, governments, or other powerful entities.
Bitcoin’s supply is limited to 21 million coins, a built-in scarcity that proponents say is a hedge that is perfect for inflation. Critics have long said that Bitcoin lacks any inherent value, but so far, Bitcoin has risen at a significant price against opponents. Some backers of strategic Bitcoin reserves say one day could help pay off U.S. national debt.
Crypto prices soared after Mr. Trump’s victory last year, and when the price of Bitcoin first exceeded $100,000 in early December, Trump gained credibility and posted “You’re welcome!!!” on social media.
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But the price has cooled down. Mr. Trump’s executive order is not the same as the immediate surge in Bitcoin’s price, which traded about $86,000 shortly after its announcement.
The executive order also creates “U.S. Digital Asset Inventory” where the government will hold other cryptocurrencies other than Bitcoin. Mr. Trump announced the cryptocurrency price at a brief pace after he announced on Sunday that he hoped the administration would hold the lesser-known cryptocurrencies XRP, Solana and Cardano.
publishing – March 7, 2025 07:42 AM Yes
