US President-elect Donald Trump has proposed creating a bitcoin strategic reserve to boost the country’s economy and reduce its national debt. The idea is to stockpile the volatile digital currency, currently valued at nearly $20 billion, to benefit Americans.
According to Trump, holding onto bitcoin would create “a permanent national asset” and make the US a leader in the global cryptocurrency space. However, not everyone agrees that a strategic reserve is necessary. Cryptocurrency experts say regulatory clarity around digital assets could benefit the economy more than holding volatile assets.
The idea of a bitcoin stockpile has been discussed since Trump’s July conference, where he expressed interest in halting future sales and creating a “core” stockpile. Republican Sen. Cynthia Lummis introduced a bill to acquire 1 million bitcoin over time to hold for at least 20 years. The plan would require revaluing $11 billion worth of gold certificates on the Federal Reserve’s balance sheets.
Critics say funding a strategic reserve could lead to increased debt and risks associated with cryptocurrency, such as cyber attacks and dramatic price tumbles. Fed Chair Jerome Powell has stated that the central bank is not looking to hold bitcoin, saying it would require a law change.
While some experts believe a bitcoin reserve could help the US compete in the global cryptocurrency space, others argue that regulatory clarity is more important for economic growth. The proposal faces opposition from lawmakers and experts, raising questions about its feasibility and potential risks.
Source: https://eu.usatoday.com/story/money/2024/12/19/bitcoin-strategic-reserve-stockpile-trump/77092608007