President Trump has signed an executive order to establish a Strategic Bitcoin Reserve, aiming to stockpile Bitcoin, Ethereum, and other tokens. Funded by forfeited assets to prevent taxpayer costs, the initiative also directs an accounting of 200,000 Bitcoins, likened to a ‘digital Fort Knox.’ The order establishes a US Digital Asset Stockpile managed under the Treasury.
In a groundbreaking move, President Donald Trump has established a Strategic Bitcoin Reserve through an executive order, as shared by David Sacks, who serves as the White House czar for AI and cryptocurrency. This initiative includes plans to stockpile not only Bitcoin but also Ethereum and three additional cryptocurrencies, inciting significant controversy within the crypto community.
Sacks explained that the reserve will be funded with Bitcoin previously owned by the federal government, confiscated during criminal or civil asset forfeiture proceedings. This method aims to shield taxpayers from incurring costs related to the reserve, promoting financial responsibility.
Trump’s executive order mandates a comprehensive audit of the government’s digital asset holdings, with Sacks estimating that around 200,000 Bitcoins are included. Importantly, these assets will remain unsold, drawing an analogy of the reserve to “a digital Fort Knox.”
Furthermore, the order establishes a US Digital Asset Stockpile, entrusted to the stewardship of the Treasury Department. This Stockpile is designed for the prudent management of the government’s digital assets, ensuring their proper oversight as the digital landscape evolves.
In conclusion, Trump’s executive order to create a Strategic Bitcoin Reserve represents a significant step into the realm of cryptocurrencies by the U.S. government. By utilizing forfeited assets, the initiative is set to avoid taxpayer costs while promoting responsible management of digital assets under the Treasury’s purview. The digital reserve draws parallels to established security measures, reflecting a commitment to protect these valuable resources.
Original Source: www.cnn.com
