The Future of Bitcoin in the United States: Reflections on Donald Trump's Statements
Donald Trump's recent statements, within the framework of the Bitcoin Conference 2024, held in the city of Nashville (USA) about the future of Bitcoin in the United States, have generated a deep and broad debate among economists, technologists and citizens. His proposal to create a strategic national reserve of one million Bitcoins and his promise to halt any efforts towards the creation of a central bank digital currency (CBDC) raise important questions about the role of cryptocurrencies in the modern economy and the future of financial regulation in the United States.
The Strategic National Reserve of Bitcoin
Trump has proposed the creation of a strategic national reserve of Bitcoin, stating that the US government already holds almost 210,000 Bitcoins and that, under his administration, 100% of this reserve and any future acquisitions would be maintained. This initiative is ambitious and highlights a vision where Bitcoin is not only an investment, but a strategic asset.
The idea is to expand this reserve to a minimum, one million bitcoins, making daily purchases (the same thing that Robert F. Kennedy Jr., an independent candidate who will sign an executive order for the US to buy 550 #Bitcoin every day to build a reserve of 4 million #BTC, if elected president, or the same technique that Nayib Bukele uses in El Salvador, who buys 1 BTC every day at the price that is day after day)
Donald Trump literally said it like this, “I propose creating a strategic national Bitcoin reserve of 1 million bitcoins. The US government is among the largest holders of Bitcoin in the world: the federal government holds almost 210,000 Bitcoin. But for too long, our government has violated the cardinal rule that every Bitcoiner knows by heart: “Never sell your bitcoins.” And so, as a final part of my plan today, I announce that if elected, it will be the policy of my administration to hold 100% of all Bitcoin that the US government currently owns or acquires in the future. “This will serve, in effect, as the core of a strategic national reserve of Bitcoin.”
Technical and Economic Aspects
From a technical point of view, the creation of a national Bitcoin reserve would involve securing assets against cyberattacks and guaranteeing transparency in management. Cold wallets, offline storage methods, would be crucial to protecting these assets from potential cyber threats.
Economically, holding a large reserve of Bitcoin could stabilize its price and strengthen the perception of Bitcoin as a store of value similar to gold. However, it could also lead to the concentration of this asset in the hands of the government, which contrasts with the decentralized philosophy that Bitcoin promotes, but it is a fact that more and more international funds and governments are accumulating without stopping this asset, in case of BlackRock and companies like Microstrategy. Soft hands are missing their great historic opportunity.
Regulatory Considerations
Regulating a national Bitcoin reserve also presents significant challenges. Establishing a clear and transparent regulatory framework, as Trump suggests, would be essential to prevent abuses and ensure that the management of these assets is in the public interest. The complaints of numerous companies that have to leave the country to develop, the relentless persecution of the SEC against all crypto projects, is an example of this.
Rejection of the Central Bank Digital Currency (CBDC)
Trump has strongly stated his opposition to the creation of a CBDC, arguing that Bitcoin represents freedom and independence from government coercion. This position resonates with many cryptocurrency enthusiasts who see CBDCs as a tool of state control. Reason why many European citizens fear the development of MICA and new digital implementations that force Europeans to forcefully use the digital Euro (CBDC) and be controlled down to the last detail, with the danger that this entails for the freedoms of the individual and that directly violates their privacy.
Donald Trump comments “I will immediately order the Treasury Department and other federal agencies to cease and desist all steps toward the creation of a central bank digital currency. “There will never be a CBDC as long as I am president of the US.”
“Bitcoin represents freedom, sovereignty and independence from government coercion and control. “The Biden-Harris Administration’s crackdown on cryptocurrencies and Bitcoin is wrong and very bad for our country.”
The Technology Behind Bitcoin
Bitcoin, often described as a technological marvel, is a testament to human ingenuity. The blockchain technology that underpins Bitcoin offers a decentralized and transparent way to conduct transactions. This technology is not only innovative, but also has the potential to revolutionize many sectors, from finance to supply chain.
“Bitcoin has gone from just an idea posted anonymously on an Internet forum to the ninth most valuable asset in the world.”
Bitcoin and Global Competition
Trump has warned that if the United States does not adopt cryptocurrency technology, other countries like China will dominate this space. This reflects a global competition where the adoption of emerging technologies can define the economic and technological leadership of the future.
The China Threat
China has already made significant progress in developing its own CBDC and integrating blockchain into various sectors. The competition is not only focused on the adoption of cryptocurrencies, but also on the establishment of standards and regulations that could influence globally.
“If we don't adopt cryptocurrency technology and Bitcoin, China will do it, other countries will do it. “They will dominate.”
United States as Crypto Capital
Trump's vision of turning the United States into the crypto capital of the world involves not only the adoption of Bitcoin, but also the creation of a favorable ecosystem for innovation and technological development. This would require significant changes to current regulatory policies, which many criticize for being too restrictive.
“I want to ensure that the United States is the crypto capital of the planet and the Bitcoin superpower of the world.”
The Need for Clear and Fair Regulation
Trump has promised to establish a Presidential Bitcoin and Cryptocurrency Advisory Council to develop clear and fair regulatory guidelines. This move could provide the certainty and stability that many businesses and developers need to operate and grow in the cryptocurrency space.
Thus, Donald Trump confirms “I will immediately appoint a Presidential Bitcoin and Cryptocurrency Advisory Council made up of the best and brightest minds we can find. Your task will be to design transparent regulatory guidelines for the benefit of the entire industry, and you will achieve this in my first 100 days. We will have regulations, but from now on, the rules will be written by people who love their industry, not hate it. They will be clear, simple, direct and fair.”
The Importance of Brilliant Minds, Transparency and Simplicity
Engaging experts who understand and support the industry is crucial to creating regulations that not only protect consumers but also encourage innovation. This contrasts with current policies, which are often seen as punitive and limiting.
“Our government will no longer sit back and watch Bitcoin jobs and businesses flee to other countries because US laws are too confusing, too harsh, too angry, and too rigid.”
One of the most common criticisms of financial regulation is its complexity. Trump promises clear, simple and direct regulations, which could attract more investment and development to the United States, positioning it as a leader in the cryptocurrency space.
In short, Donald Trump's statements about the future of Bitcoin in the United States are bold and provocative. They propose a vision where Bitcoin is not only an innovative financial technology, but a strategic asset and a tool for economic freedom and independence.
While there are many technical and regulatory challenges ahead, the adoption and integration of Bitcoin into the US economy could have profound and lasting implications. Ultimately, Trump's proposal highlights the need for an informed and balanced debate about the role of cryptocurrencies in our economic and technological future.