Crypto News

Trump’s Bold Move: US Establishes First National Bitcoin Reserve and Aims to Become Crypto Capital of the World

March 7, 2025
Smart Money

President Trump Establishes Strategic Reserve for Bitcoin

Washington, D.C. – In a bold move that marks a significant turnaround, President Donald Trump has signed an executive order to establish a strategic reserve for Bitcoin, positioning the United States as one of the few nations globally to create a national stockpile for blockchain assets. The announcement was made by David Sacks, White House AI and cryptocurrency advisor, in a post on the platform X.

Details of the Executive Order

The newly created reserve will primarily hold cryptocurrencies that have been forfeited to the federal government through various criminal or civil proceedings. In his statement, Sacks emphasized that the U.S. government plans to retain the Bitcoin held in the reserve as an asset, stating that none of it will be sold. This decision aligns with Trump’s broader ambition to transform the U.S. into "the Crypto Capital of the World."

Additional details about the reserve are expected to be revealed during a crypto summit scheduled to take place at the White House this Friday. However, questions remain about potential legal hurdles that the initiative may face, or whether it would require additional legislative approval from Congress.

A Digital Fort Knox

Sacks compared the new stockpile to “a digital Fort Knox” for cryptocurrency, drawing parallels to the well-known Kentucky military base that stores a substantial portion of the country’s gold assets. In addition to Bitcoin, Trump’s order also encompasses a strategic stockpile for other cryptocurrencies that have been forfeited, directing officials to conduct a full accounting of the federal government’s current crypto reserves. As of now, Sacks estimates that these reserves include around 200,000 Bitcoin, valued at approximately $17.5 billion at current market prices.

Implications for Taxpayers and the Market

While the specifics regarding how the Bitcoin reserve will directly benefit American citizens remain unclear, Sacks assured the public that the initiative "will not cost taxpayers a dime." This statement implied that the U.S. government does not plan to purchase additional Bitcoin for the reserve, which contributed to a decline in the cryptocurrency’s market value, with prices dropping by more than 5% after this announcement.

Countries around the world maintain strategic reserves of national assets for various reasons, including diversifying government holdings and mitigating financial risks. The United States is already familiar with the concept, as it maintains a petroleum reserve. Canada, for instance, has a reserve dedicated to maple syrup.

Previous Engagement with the Crypto Community

In a related turn of events earlier this week, Trump disclosed the names of five cryptocurrencies he would like to see included in the strategic reserve. The announcement sparked a swift increase in the market value of these coins—including Bitcoin, Ethereum, XRP, Solana, and Cardano—demonstrating the immediate impact of his engagement with the crypto community.

It is noteworthy that Trump’s relationship with cryptocurrency has evolved considerably; just four years ago, he described Bitcoin as something that "seems like a scam." His administration has taken a pro-crypto stance in stark contrast to the regulatory actions taken under former President Joe Biden, who initiated a crackdown on cryptocurrencies due to concerns related to fraud and market stability.

As the nation anticipates further details from the upcoming White House summit, the establishment of a strategic Bitcoin reserve signals a significant shift in U.S. policy towards cryptocurrency and blockchain technology.