Top crypto executives and investors are calling on President-elect Donald Trump to create a national reserve of bitcoin. The move could bring the volatile and largely unregulated digital currency into the nation’s financial strategy, signaling a major shift in how governments approach cryptocurrencies.
Trump has shown interest in the idea, urging some cryptocurrency advocates to go even further: buy billions of dollars worth of bitcoin and hold it for decades. They believe the move could make bitcoin a strategic asset, similar to gold, and could help reduce the national debt in the long run.
Proponents of the initiative argue that Bitcoin’s scarcity and growing global adoption make it a valuable long-term investment. As an asset limited to 21 million coins, Bitcoin is often referred to as “digital gold,” offering potential protection against inflation and economic instability.
“By securing a large reserve of bitcoin now, the US can stay ahead of other countries already exploring the integration of cryptocurrencies into their financial systems,” said one senior industry executive.
Proponents claim that holding Bitcoin can provide the following benefits:
• Hedging against inflation: Bitcoin's decentralized nature and limited supply make it resistant to inflationary pressures.
• Possibility of reducing debt: If the value of Bitcoin continues to rise, the reserve could be used to offset parts of the national debt.
• Global Leadership: By embracing Bitcoin, the United States can cement its position as a leader in financial innovation.
Despite the enthusiasm, the proposals have faced skepticism from policymakers and financial experts. Critics warn that Bitcoin’s volatility and regulatory uncertainty make it a risky addition to national reserves. Additionally, some warn that incorporating cryptocurrencies into government finances could increase exposure to cyber risks.
