The establishment of a bitcoin virtual currency reserve has been declared by US President Donald Trump.
The official order pertaining to this has been signed by Trump. On Friday, the White House announced that the President has begun the process of establishing a cryptocurrency reserve.
It is important to note that while the majority of nations, including India, do not formally recognize Bitcoin, Trump's plan to establish a cryptocurrency reserve will aid in the virtual currency's international acceptance.
The US government has over two lakh bitcoins
"President Trump signed an executive order to establish a Strategic Bitcoin Reserve just minutes ago," the White House announced. The federal government's bitcoin that was taken as part of criminal or civil asset forfeiture procedures will be used to capitalize the reserve. This implies that taxpayers won't bear any financial burden.
Although there has never been a thorough audit, it claims that the US government has over two lakh bitcoins. A thorough audit of the federal government's digital asset holdings is mandated by the Presidential Executive Order. Bitcoin stored in the US reserve will not be sold. As a store of value, it will be retained. For cryptocurrencies, sometimes known as "digital gold," the reserve functions similarly to a virtual Fort Knox.
According to the report, the early selling of bitcoin has already cost US taxpayers more than $17 billion. The federal government now has a plan to increase the value of its assets.
The secretaries of the Treasury and Commerce have been given permission to create budget-neutral plans to obtain more bitcoins, so long as those plans don't result in any extra expenses for US taxpayers.
Establishing strategic bitcoin reserve and digital asset stockpile
A U.S. Digital Asset Stockpile, which comprises digital assets other than Bitcoin that have been confiscated in criminal or civil processes, is also established under the presidential order. Other assets acquired through forfeiture actions will not be acquired by the government for the stockpile. The Treasury Department is in charge of the stockpile's responsible management of the government's digital assets.
Trump pledged to establish a strategic bitcoin reserve and digital asset stockpile, according to the report, which cited pledges made and kept. Those assurances have come to pass. Trump's determination to establish the US as the "crypto capital of the world" is demonstrated by this executive order.
"I want to thank the President for his leadership and vision in supporting this cutting-edge technology and his swift execution in supporting the digital asset industry," stated David Sox, the White House's czar for AI and crypto. In fact, his administration is operating at "tech speed." For their assistance and support in completing this work, I also want to thank the President's Working Group on Digital Asset Markets, especially Treasury Secretary Scott Bessant and Commerce Secretary Howard Lutnick. Lastly, as our working group's executive director, Bo Hynes was extremely important.
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