The Bitcoin Strategic Reserve formalized by Trump disappoints: too little, too late?

It is now official: bitcoin will be put in the reserves of the United States

Creating a Bitcoin Strategic Reserve was one of Donald Trump's campaign promises, and it was an announced announcement by the cryptocurrency community, which hoped for a positive impact on the markets.

However, Trump's recent initiatives in terms of cryptocurrencies had already aroused skepticism, many qualifying them as “anything”. Beyond the creation of his own same, the President of the United States had indeed announced last week that the strategic reserve would also include ETH, XRP, soil and ADA. However, these cryptocurrencies are not decentralized and much less neutral than Bitcoin, fueling speculations on potential conflicts of interest.

💡 How to buy bitcoin (BTC)?

Tonight, Donald Trump has signed an executive order formalizing the creation of a Bitcoin Strategic Reservebut it disappoints part of the community.

First page of the executive order

Here is what to remember from this new executive order:

• The Bitcoin Strategic Reserve (SBR) will be made up of BTC obtained from the judicial seizures made by the US Treasury Department ;
• No sale of these BTCs is plannedthey should be “Maintained as a value reserve asset” ;
• Treasury and trade secretaries are authorized to develop “Neutral budgetary strategies to acquire additional bitcoins” without recourse to the funds of American taxpayers;
• Regarding other cryptocurrencies, they can also be added to the reserve, but no “Additional Acquisition” is not allowed. Unlike Bitcoin, these assets can however be sold.

It is estimated that the United States government has around 200,000 bitcoins, or $ 17.4 billion during the current BTC. However, almost half of these BTCs will have to be returned to the Bitfinex exchange platform because they come from a hack suffered several years ago.

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What will this strategic reserve change for cryptocurrencies?

It is now clear that The United States government will not spend public money to buy bitcoinor worse, ether and other cryptocurrencies created by private companies.

There are 2 parts of the cryptocurrency community currently feel neglected: on the one hand, part of the bitcoiners who hoped to see the strategic reserve being strengthened by the purchase of new BTCs, and on the other, The cryptocurrency that dreamed of seeing their favorite cryptocurrency “Pump to the Moon” thanks to the buying pressure of government purchases.

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Although this reserve remains contrary to the fundamental ambitions of Bitcoin, namely to create reservations for individuals rather than for states, She seems to represent a happy medium, neither too extravagant nor too conservative.

From now on, The United States joins the very limited circle of countries with Bitcoin in reserve. This initiative had been launched by Salvador in 2021, which even made BTC a legal currency alongside the dollar. The Kingdom of Bhutan then followed using its surpluses of renewable energies to undermine Bitcoin, profitable its power stations, finance its energy transition and constitute a reserve of BTC.

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Source: White House

First attracted by the bait of gain, I am now trapped Deep the Rabbit Hole. Without a way out, I just have to share my knowledge and transmit the passion I have for Bitcoin. I am also the creator of Adopt A Block, an educational site dedicated to Bitcoin.

Marius Farashi Tasooji

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