US President Donald Trump has signed an executive order creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile to store government-held cryptocurrencies. The move aims to diversify the government’s digital assets, but industry watchers have raised concerns about transparency and the lack of active buying.
The reserve will hold approximately 200,000 Bitcoins worth $17.5 billion at current prices, with estimates suggesting this is already part of the existing federal government holdings. Critics argue that the US should be more aggressive in its approach to crypto regulation and diversification.
Some experts have praised the move, saying it makes sense for the government to hold onto assets rather than selling them off. However, others have expressed concerns about the lack of transparency and potential for arbitrary asset selections.
David Sacks, White House AI and crypto tsar, has ordered a full accounting of existing crypto reserves and aims to ensure the remaining Bitcoins are used in a way that maximizes value for American taxpayers.
The move comes after Trump revealed five cryptocurrencies he would like to include in the strategic reserve, with Bitcoin being one of them. The announcement sparked a significant price drop in Bitcoin, leading some experts to warn against picking winners or favoring certain assets over others.
Experts are calling for greater transparency and independent audits to foster innovation rather than favoritism. With no clear framework for asset selection, there is risk that the reserve could lead to distorted markets and a loss of public trust.
Source: https://www.bbc.com/news/articles/cqx0g1py5v0o