Former President Donald Trump signed an executive order on Thursday to establish a government reserve of bitcoin, marking a significant step toward the cryptocurrency’s potential mainstream adoption. Under the directive, the U.S. government will retain an estimated 200,000 bitcoin seized in criminal and civil cases, according to David Sacks, Trump’s appointed “crypto czar.”
Sacks described the reserve as a “digital Fort Knox” for bitcoin, emphasizing that the government will not sell the cryptocurrency but instead hold it as a store of value. The order mandates a comprehensive audit of the government’s bitcoin holdings, which Sacks noted have never been fully accounted for. He added that previous sales of approximately 195,000 bitcoin over the past decade netted $366 million but would now be worth around $17 billion.
The executive order also tasks the Treasury and Commerce Departments with developing strategies to acquire additional bitcoin without impacting the federal budget. Once skeptical of bitcoin, Trump has since embraced digital currencies, positioning himself as a pro-crypto leader. His administration has pursued policies favorable to the industry, including dropping enforcement actions against major crypto firms by the Securities and Exchange Commission. A White House “Crypto Summit” is scheduled for Friday, where key industry figures will convene.
Bitcoin, the first and most widely recognized cryptocurrency, was created in response to the 2008 financial crisis. With a capped supply of 21 million coins, it is often viewed as a hedge against inflation. While critics argue it lacks intrinsic value, its price has consistently risen, reaching a market cap of approximately $1.7 trillion. Supporters of the reserve suggest it could eventually help address the U.S. national debt. Despite a recent cooling in prices, Trump’s announcement did not immediately impact bitcoin’s value, which hovered around $86,000 post-announcement. — news fromThe Associated Press