- President Trump’s administration plans to establish a strategic Bitcoin reserve, which already holds nearly 200,000 BTC.
- Countries such as Switzerland, Bhutan and El Salvador are also integrating Bitcoin into national financial strategies.
Amid mounting speculation, President Donald Trump’s administration is reportedly planning to create a strategic Bitcoin [BTC] Reserve in the United States, fulfilling an important election campaign promise.
This bold move has sparked widespread debate, both nationally and internationally, about its potential impact on national and global financial systems.
Interestingly, this development follows a recent statement from Fed Chairman Jerome Powell during his press conference, where he noted:
“We are not allowed to own Bitcoin. But the Federal Reserve Act says what we can own and we are not looking to change the law.”
How will this help the US and countries around the world?
Industry experts such as Alistair Milne of the Altana Digital Currency Fund argued that holding these assets could effectively create a “de facto” Bitcoin reserve, stabilizing its supply and influencing its price.
Additionally, Senator Cynthia Lummis has introduced a bill proposing that the government acquire one million Bitcoins within five years, aiming to create a reserve that could help address the country’s $36 trillion debt and strengthen the U.S. dollar.
That said, the idea of a Bitcoin reserve is not exclusive to the US; countries like Bhutan and El Salvador have already integrated Bitcoin into their national financial strategies, albeit on a smaller scale.
Furthermore, a recent AMBCrypto report highlights a growing trend: countries with struggling currencies, exacerbated by the rising strength of the dollar, are increasingly turning to Bitcoin as a strategic reserve.
Switzerland, for example, has now entered into this dialogue, given the addition of Bitcoin to its national reserves.
Russia and China are now also joining the fray.
Should President Trump continue to expand US Bitcoin holdings, it could lead to a significant transformation in Bitcoin’s global status and purpose.
This could impact the way countries around the world view and use cryptocurrency in their financial systems.
