Leading experts are now asserting that the creation of a U.S. Bitcoin (CRYPTO: BTC) reserve is increasingly likely, viewing President Donald Trumpâs recent executive order as a significant signal of a major shift in U.S. crypto policy.
What Happened: The order, signed last week, directs the evaluation of a “strategic national digital assets stockpile” has sparked intense discussion among industry stakeholders.
The move has also put a halt on central bank digital currencies (CBDCs), marking a decisive turn from previous policies.
Speaking with Benzinga, Sveinn Valfells, co-founder and chair of Monerium, strongly advocates for the incorporation of Bitcoin into U.S. reserves, highlighting the assetâs growing market significance and liquidity.
âThe prospect of the U.S. Treasury incorporating Bitcoin into its reserves warrants serious consideration, particularly as digital assets gain mainstream acceptance,â he said, noting Bitcoinâs market capitalization of $2 trillion, which is approximately 15% of global gold reserves.
He also pointed out that the assetâs growing liquidity, with daily exchange volumes in the tens of billions, further strengthens its case as a reserve asset.Â
He suggested that a prudent approach would involve âBitcoin holdings in the tens of billionsâ and emphasized the importance of secure custody solutions, such as hardware wallets or regulated custodians.
Valfells also addressed the need for adequate mining decentralization to prevent transaction censorship, and safeguards against market manipulation and insider trading, stating, âWhile these challenges are substantial, theyâre not insurmountable within the framework of existing Treasury security protocols.â
What Experts Are Saying: Laura Wallendal, CEO and Founder of Acre, asserted that âFor the United States, a Bitcoin reserve is inevitable,â while also mentioning that this is not an immediate prospect.
Wallendal explained that this move requires a comprehensive and calculated approach, emphasizing that âa Bitcoin reserve demands deliberate, long-term planning with significant economic and geopolitical considerations.âÂ
Wallendal further underscored Bitcoinâs inherent accessibility and the growing institutional and retail acceptance by calling it âfreedom money,â stating that, âit’s clear that Bitcoin’s credibility is only growing.â
Azeem Khan, co-founder of Morph, while expressing reservations about the principle of national governments owning Bitcoin, acknowledges the strategic benefits if the U.S. does proceed with it.
âI’m not a fan of national governments owning Bitcoinâprivate money belongs in private hands,â he said, but added that a U.S. Bitcoin reserve could potentially âserve as a long-term hedge against inflation and strengthen the U.S. dollar.âÂ
Khan views the initiative as a signal that the U.S. is starting to take digital assets seriously, further stating that while Bitcoin should absolutely be the foundation, the opportunity to expand this focus over time to other Web3 technologies, like Ethereum (CRYPTO: ETH) or Layer-1 protocols, could position the U.S. as a true leader in the digital economy.
He also cautioned against over-optimism, warning, âThis is far from a guarantee,â and pointing out that much will depend on the recommendations of the Working Group and the willingness of policymakers to act decisively.
The executive order also sets a 60-day deadline for relevant agencies to review existing regulations and make recommendations on which need to be rescinded or modified.
A significant departure from previous administrations, the order explicitly prohibits the establishment of CBDCs within the U.S., stating that no agency can take any action to âestablish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.” It further mandates the immediate termination of all existing CBDC-related initiatives.
The order explicitly aims to reverse policies that “suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance.”
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Image created using artificial intelligence with Midjourney.