Donald Trump has officially signed a significant executive order to create a Bitcoin reserve valued at approximately $18 billion, marking a major policy shift.
Trump’s bold move to position the U.S. as a crypto leader
President Donald Trump has signed a major executive order regarding cryptocurrency.
The order, titled “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile,” was signed on March 6.
While, this move aims to give the United States a strategic advantage in digital assets.
The purpose of the Strategic Bitcoin Reserve
The executive order highlights the importance of Bitcoin in the global financial system.
According to the order, the U.S. government holds a significant amount of Bitcoin but has lacked a policy to maximize its strategic value.
“The United States Government currently holds a significant amount of BTC, but has not implemented a policy to maximize BTC’s strategic position as a unique store of value in the global financial system,” the order goes on.
“Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity,” the order states.
The U.S. government’s Bitcoin holdings
While the order does not disclose the exact amount of Bitcoin held by the government, White House Crypto and AI Czar David Sacks has provided an estimate. He claims the U.S. owns 200,000 Bitcoins.
At current market rates of over $90,000 per coin, this reserve is valued at approximately $18 billion.
Additionally, Sacks also acknowledged that there has never been an official audit. He stated that the order mandates “a full accounting of the federal government’s digital asset holdings.”
The origin of the Bitcoin reserve
The Bitcoins in the Strategic Bitcoin Reserve come from asset forfeitures.
According to Sacks, they were obtained through criminal and civil asset seizure proceedings.
The government has no plans to sell these holdings. Instead, they will be preserved as a store of value.
In addition to the Bitcoin reserve, the executive order establishes the United States Digital Asset Stockpile. This stockpile will be managed by the Treasury Department.
Additionally, its purpose is to provide “a secure account for orderly and strategic management of the United States’ other digital asset holdings.”
While legal authorities will seize cryptocurrencies in proceedings to compose the stockpile, similar to the Bitcoin reserve.
The White House crypto summit
The signing of this executive order comes just before the first-ever White House crypto summit.
The event, scheduled for March 7, will bring together industry leaders to discuss the future of cryptocurrency in the United States.
Additionally, the organizers will start the summit at 1:30 p.m. ET and are expected to discuss regulatory policies and national security concerns.