President Donald Trump has initiated the creation of a U.S. sovereign wealth fund. One suggested idea is to use Bitcoin to fund it.
Fund Initiative
President Donald Trump has ordered the creation of a U.S. sovereign wealth fund within a year. The Treasury and Commerce Departments must present a plan in 90 days, detailing how to fund and manage it. Since the U.S. runs on a deficit, Congress would need to approve the fund.
Analyst's Proposal
Billionaire investor Chamath Palihapitiya has suggested utilizing the U.S. government's Bitcoin holdings to fund the new sovereign wealth fund. With the U.S. holding about 198,109 BTC, worth roughly $19.4 billion, the government could use these holdings while slowly selling off assets like its 50% stake in TikTok. He also recommends diversifying the fund across various financial instruments for long-term stability.
Global Experience
Countries like Norway and the UK have already incorporated Bitcoin into their financial strategies. Norway's sovereign wealth fund has invested in crypto businesses, and the UK government holds around 61,200 BTC. These investments help hedge against inflation and diversify risk.
The creation of a U.S. sovereign wealth fund could be a significant step towards economic stability. Employing digital assets like Bitcoin might become part of the government's new strategy.
