US President Donald Trump has signed an executive order creating a Strategic Bitcoin Reserve, likened to “a digital Fort Knox”. The reserve will be funded by seized bitcoins worth around $17 billion and aims to provide a safe-haven asset for the cryptocurrency sector.
The reserve’s creation comes as gold prices have surpassed $3,000 per ounce, driven by uncertainty over Trump’s tariffs. However, critics argue that cryptocurrencies are risky assets with no intrinsic value. Analysts, however, see the reserve as a way to stabilize the currency and provide transparency.
The US government will fund the reserve by adding more bitcoin tokens without incurring additional costs. The reserve can be added to as long as it is “budget-neutral”. The initial amount of 200,000 bitcoins will remain virtually secured for an indefinite time.
Other countries, including Brazil, Germany, and El Salvador, are also exploring cryptocurrency reserves or selling seized digital assets. Bhutan holds nearly $900 million worth of bitcoin, equivalent to nearly 30% of the kingdom’s gross domestic product.
The reserve’s establishment has sparked debate over its true intentions, with some speculating that it may be a way to drive interest in the crypto industry and financially benefit investors.
Source: https://www.france24.com/en/live-news/20250316-trump-s-bitcoin-reserve-a-digital-fort-knox