Trump Administration Contemplating Strategic Bitcoin Reserve
Reports suggest that US President-elect Donald Trump is exploring the possibility of establishing a Strategic Bitcoin Reserve (SBR) through an Executive Order. Dennis Porter, the founder of the Satoshi Act Fund, shared this information on social media.
Utilizing the Treasury’s Exchange Stabilization Fund
Porter mentioned that Trump plans to utilize the Treasury’s Exchange Stabilization Fund (ESF) to implement this strategy after his inauguration. The ESF, with assets exceeding $200 billion as of October 2024, is typically used to stabilize financial markets during crises.
“The Treasury, through the Exchange Stabilization Fund, has the authority to stabilize the dollar by buying currencies. Trump will use this fund to buy Bitcoin.”
Importance of the Move
Porter emphasized the significance of this move for the US financial strategy and the need to act swiftly to maintain a competitive edge. In case Trump decides against the executive order, Porter indicated that efforts would be made to advocate for state-level legislation to advance the SBR agenda.
“If he doesn’t, we will be ready to apply pressure at the state level by creating a wave of ‘Strategic Bitcoin Reserves.’”
Global Interest in Strategic Bitcoin Reserves
The concept of a Strategic Bitcoin Reserve has gained traction worldwide, with various countries exploring similar initiatives. In the US, lawmakers like Senator Cynthia Lummis have proposed acquiring significant Bitcoin holdings for national reserves.
States such as Pennsylvania and Texas have taken steps towards establishing Bitcoin reserves, with others actively considering similar measures. Internationally, countries like Brazil, Poland, and Japan have also shown interest in allocating a portion of their reserves to Bitcoin.
While these developments highlight the growing recognition of Bitcoin’s role in future financial systems, concerns about potential centralization of Bitcoin supply into corporate reserves have also been raised.
