United States President Donald Trump has launched two new mechanisms for federal government cryptocurrency assets.
Trump on Thursday signed an executive order to establish a strategic Bitcoin reserve and a US digital asset stockpile, overseen by the US Treasury Department under a dedicated Bitcoin and other cryptocurrencies.
The administration considers these digital assets, particularly Bitcoin, as stable stores of value that are likely to appreciate over time due to inherent scarcity.
“The reserve is like a digital Fort Knox for the cryptocurrency, often called ‘digital gold,” White House crypto Tsar David Sacks explained, estimating that the government currently owns roughly 200,000 bitcoins worth over $17 billion.
Sacks added that in the past the US sold some 195,000 bitcoins for just $366 million, representing a significant financial loss for taxpayers.
The main source of the US government's crypto holdings is derived from criminal or civil asset forfeiture.
Trump has instructed the Treasury secretary to explore “budget neutral” strategies for acquiring more bitcoins, although this directive does not extend to other digital assets.
Meanwhile, “The JP Morgan boss has said that Bitcoin holds no intrinsic value.”
Charles Edwards, founder of Bitcoin-focused hedge fund Capriole Investments, criticised the decision as “the most underwhelming and disappointing outcome we could have expected,” arguing that the lack of an active purchasing policy merely rebrands existing government holdings.
However, Sacks argued that Trump’s actions align with his campaign promise to establish the US as the “crypto capital of the world” through the support of innovative digital financial instruments.
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