President Donald Trump and a stock of other digital assets through an executive order on Thursday (6) shortly before hosting a cryptocurrency dome in the White House.
On Friday (7), Trump said he seeks to make the US capital of digital assets, and that his management is doing “historical action to deliver this promise.”
The Republican states that federal agencies will conduct an inventory in search of all crypto that the government holds to transfer to the US Treasury.
Bitcoin after President Trump signs the executive order by establishing the reserve.
According to Trump’s executive order, the United States would basically consolidate all seized bitcoins through criminal and civil confiscation and maintain them as a reserve asset – similar to the way gold and oil are stocked.
The proponents of change say that the reserve would act as protection against financial instability in the hypothetical future in which cryptocurrencies replace regular money issued by central banks. According to them, an investment in Bitcoin could help pay for national debt.
The argument for a reserve is that there is a chance that the Federal Reserve can completely misunderstand the dollar. It’s a “small, small chance,” says Jason Yanowitz, co -founder of the Crypto BlockWorks news platform.
“But in this case, things like gold and bitcoin become hedges against dollar devaluation and inflation,” he explains.
The US Order says the reserve would be built using only Bitcoin seized by police. It is estimated that there will be $ 17 billion in bitcoins left over several legal processes over the years – usually the treasure sells these assets to compensate for the victims and reinforce the police.
Authorities have emphasized that no taxpayers will be used to purchase more bitcoins. However, the Order authorizes the Treasury and Commerce Departments to develop “neutral budget” strategies to buy more bitcoins.
“We can only buy more if it does not increase the deficit or debt, or cost expensive for taxpayers,” said Cryptocurrency Tsar, David Sacks, before the White House cryptocurrency summit on Friday.
Bitcoin, the most popular cryptocurrency in the world, is a computer code, stored in a digital wallet protected by a password.
It is possible to use Bitcoin as a value reserve – a type of “digital gold”. The option is mainly used by people from countries with weak currencies.
Despite bitcoin price fluctuations on a given day or week, Bitcoin has risen more than 1,000% in the last five years.
