Bitcoin Reserve: Understand One of Trump's Main Proposals in the US and Its Impacts
According to experts, the possible creation of a reserve in the US could boost other countries' adoption of cryptocurrency
Published by: Broadcast Exclusivo
By Gustavo Boldrini, from Broadcast
São Paulo, 12/27/2024 - Creating a national Bitcoin reserve was one of the main proposals of the president-elect of the United States, Donald Trump, throughout the campaign that culminated in his victory in the elections on November 5th. It was also one of the causes of the euphoria of part of the cryptocurrency market surrounding the Republican's campaign.
But, after all, what does this proposal mean and, if it comes to fruition in the new Trump administration, what should be the impact on the crypto market and the global economy in general? Let's understand below:
What is a national Bitcoin reserve?
Every government has a monetary reserve, usually in US dollars, which are the reference currency of the world economy. In the case of an emerging country like Brazil, for example, dollar reserves can serve as a sign of confidence for global investors and also as a liquidity cushion to protect the real in times of great volatility.
"We're going to do something big with cryptocurrency because we don't want China or any other country doing it. Not just China, but other countries are embracing cryptocurrencies, and we want to be in the lead," declared the US president-elect in an interview with CNBC on December 15.
How should the American Bitcoin reserve impact the market?
Analysts and cryptoasset traders have stated that the view that Bitcoin can be a store of value, and not just a simple variable income asset, has great potential to unlock even more value for the world's most famous cryptocurrency.