The Trump administration intends to establish a Strategic Bitcoin Reserve, with nearly 200K BTC already held.
Countries like Switzerland, Bhutan, and El Salvador are also integrating Bitcoin into their national financial strategies.
Amid increasing speculation, the administration of President Donald Trump is reportedly preparing to establish a Bitcoin [BTC] Strategic Reserve in the United States, fulfilling a key promise from the election campaign.
This bold move has sparked widespread controversy, both domestically and internationally, regarding its potential impact on the national and global financial systems.
Notably, this development follows a recent statement by Fed Chair Jerome Powell during a press conference, where he remarked,
We are not allowed to own Bitcoin. But the Federal Reserve Act dictates what we can own and we are not seeking a change in the law.
How can this help the United States and countries around the world?
Industry experts like Alistair Milne from the Altana Digital Currency Fund argue that maintaining these assets could establish an effective 'real-world' Bitcoin reserve, stabilizing supply and influencing its price.
Additionally, Senator Cynthia Lummis has introduced a bill proposing that the government own 1 million Bitcoins over five years, with the intention of creating a reserve that could help address the $36 trillion debt and strengthen the U.S. dollar.
However, the idea of a Bitcoin reserve is not limited to the United States – countries like Bhutan and El Salvador have integrated Bitcoin into their national financial strategies, albeit on a smaller scale.
Furthermore, a recent report from TinTucBitcoin highlighted an increasing trend – countries with struggling currencies, affected by the rising strength of the USD, are increasingly using Bitcoin as a strategic reserve.
For example, Switzerland is currently engaged in this dialogue, considering adding Bitcoin to their national reserves.
Currently, Russia and China have also entered this market.
If President Trump continues to expand the amount of Bitcoin held by the United States, this could lead to a significant shift in the global status and purpose of Bitcoin.
This could influence how countries around the world perceive and use cryptocurrencies in their financial systems.
