Fri, 07 Mar 2025

Fri, 07 Mar 2025 Why did Trump just establish a crypto strategic reserve?

The reserve will hold cryptocurrency forfeited to the government in criminal or civil proceedings, said the White House.

* President Donald Trump has signed an executive order to establish a strategic reserve for Bitcoin, making the US one of the few countries with a national stockpile of blockchain assets.
* The reserve will hold cryptocurrency forfeited to the federal government as part of criminal or civil proceedings.
* The US will not sell any Bitcoin deposited in the reserve and instead keep it as an asset.
* Trump has set a goal to make the US "the Crypto Capital of the World".
* A digital assets stockpile for cryptocurrencies other than Bitcoin that have been forfeited is also being created.
* The federal government's crypto reserves are estimated at 200,000 Bitcoin alone, worth $17.5bn at today's prices.
* It is unclear how the new stockpile will benefit Americans, but it "will not cost taxpayers a dime".
* The market price of Bitcoin fell by more than 5% after Trump's announcement.
* Some countries maintain strategic reserves of national assets to diversify government holdings and hedge against financial risk.
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