Key points
- Reserve to be composed of digital currency seized in US criminal proceedings: White House crypto “czar”
- Says use of these assets will not cost taxpayers a dime
- A Democrat senator characterised Trump’s venture as a conduit to potential corruption
NEW YORK, United States: US President Donald Trump signed an executive order Thursday establishing a “Strategic Bitcoin Reserve,” forcefully endorsing a currency once shunned as a tool for money launderers.
The government stockpile, which backers liken to a “digital Fort Knox,” will be composed of digital currency seized in US criminal proceedings, said David Sacks, the White House’s crypto “czar,” emphasising in a social media post that Thursday’s move made good on a Trump campaign promise.
The use of these assets “means it will not cost taxpayers a dime,” Sacks said in a post on X.
“The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”
Budget-neutral strategies
The policy also allows the secretaries of Commerce and Treasury to develop “budget-neutral strategies” for adding to the reserve, he said.
Bitcoin prices fell as much as five per cent following the announcement, apparently out of disappointment that the programme involves no immediate bitcoin purchases.
The move comes on the eve of a White House summit Friday with major crypto figures, who were significant donors to Trump’s successful campaign to regain the presidency.
Cryptocurrency supporters organised heavily in the 2024 election in response to the skepticism of Joe Biden’s administration to digital currency, also helping to propel Republicans to victory in key Senate races.
Financial revolution
For believers, cryptocurrencies represent a financial revolution that reduces dependence on centralised authorities while offering individuals freedom from traditional banking systems.
Trump has waded into the space personally, partnering with exchange platform World Liberty Financial and launching his own “Trump” memecoin in January as his wife Melania did the same, moves that have prompted conflict of interest accusations.
Trump critics such as Democratic Senator Chris Murphy of Connecticut have characterised Trump’s cryptocurrency venture as a conduit to potential corruption on a massive scale.
“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,” said Murphy in a video posted to X in which he called Trump’s crypto venture “a pure grift.”
Trump’s favourite cryptocurrencies
Earlier this week, Trump disclosed the names of five cryptocurrencies he would like to see added to the strategic reserve.
Following his announcement, the market prices of the five coins he mentioned—Bitcoin, Ethereum, XRP, Solana, and Cardano—quickly surged, according to BBC.
During his presidential campaign, Trump actively sought support from the crypto community, while former President Joe Biden initiated a crackdown on cryptocurrency, citing worries over fraud.
Some nations keep strategic reserves of national assets to broaden government holdings and protect against financial risk.
