U.S. President Donald Trump, signed an executive order On Thursday, creating a “Strategic Bitcoin Reserve,” marking a significant shift in the U.S. government’s approach to cryptocurrency, which was once largely dismissed as a tool for money laundering.
The reserve, which supporters liken to a “digital Fort Knox,” will be composed of Bitcoin seized during U.S. criminal investigations, according to David Sacks, the White House’s crypto “czar.”
In a post on social media, Sacks emphasized that this move fulfilled a key promise from Trump’s campaign.
“The use of these assets means it will not cost taxpayers a dime,” Sacks wrote on X (formerly Twitter).
“The purpose of the stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”
The policy also permits the Secretaries of Commerce and Treasury to develop “budget-neutral strategies” for adding to the reserve, Sacks explained.
However, the announcement led to a decline in Bitcoin prices, which dropped by as much as five percent, likely due to the fact that the program does not involve immediate Bitcoin purchases.
The executive order comes just ahead of a White House summit on Friday with prominent crypto figures, many of whom were significant donors to Trump’s 2024 presidential campaign.
Cryptocurrency advocates rallied in response to the Biden administration’s skepticism toward digital currencies, and their support was credited with helping Republicans secure victories in key Senate races.
For many supporters, cryptocurrencies represent a financial revolution, offering an alternative to centralized financial systems and granting individuals greater freedom from traditional banking.
Trump has personally engaged with the crypto space, partnering with exchange platform World Liberty Financial and launching his own “Trump” memecoin in January, with his wife Melania also entering the market.
These moves have sparked accusations of potential conflicts of interest.
Critics, including Democratic Senator Chris Murphy of Connecticut, have expressed concerns about the transparency and potential for corruption in Trump’s crypto ventures.
“It’s as if Trump is posting his Venmo or his Cash App handle and inviting corporations and foreign governments to just send him cash in secret,” Murphy said in a video posted to X, describing the venture as “a pure grift.”
AFP
