The White House has announced a new policy recognizing Bitcoin as a strategic reserve asset. President Donald Trump signed an order that changes the approach to digital assets in the country's financial strategy.
Announcement of the Bitcoin Strategic Reserve
President Donald Trump signed an Executive Order declaring Bitcoin as 'digital gold'. Under this new policy, the government will accumulate and hold Bitcoin as a strategic reserve. 'The Order creates a Strategic Bitcoin Reserve that will treat bitcoin as a reserve asset. ... The United States will not sell bitcoin deposited into this Strategic Bitcoin Reserve,' said President Trump.
Impact of New Policy on Cryptocurrency Markets
The U.S. government will focus on accumulating Bitcoin without direct taxpayer expenditures. This strategy could reduce government-driven sell pressure on Bitcoin, potentially benefiting its market value. The inclusion of Bitcoin as a strategic reserve asset underscores its growing significance in the fiscal strategy of the country.
Long-term Implications for the Global Crypto Industry
Establishing this policy marks a shift from previous practices of selling forfeited Bitcoin through auctions. This could encourage other nations to formalize their digital asset reserves, fostering the growth of the blockchain economy. Historical trends indicate an increasing adoption of cryptocurrencies by governments worldwide.
The recognition of Bitcoin as a reserve asset confirms its importance in global financial relations and may drive changes in the approaches of other countries towards digital assets.
