Will Trump create a US Bitcoin strategic reserve?

Rumors that Trump may announce a Bitcoin strategic reserve in the US have caused significant excitement in the cryptocurrency community.

Former US President Donald Trump will deliver the keynote speech at the 2024 Bitcoin Conference in Nashville next week.

Rumors circulating on social media suggest that Trump may announce Bitcoin (BTC) as a strategic reserve asset for the United States during the speech. These speculations stem from Satoshi Act co-founder Dennis Porter, who claims that reliable sources have confirmed Trump’s intentions.

BIG BREAKING NEWS: Trump to announce US #Bitcoin Strategic reserve in Nashville 🇺🇸 – Sources

— Dennis Porter (@Dennis_Porter_) July 18, 2024

Bitcoin becoming a reserve asset is not a new concept. Bitcoin-friendly politicians like former presidential candidate Vivek Ramaswamy have long advocated it, according to Bitcoin Magazine.

Ramaswamy suggested backing the US dollar with a basket of commodities, including Bitcoin, to combat inflation and preserve the value of the currency over time.

What will the US Bitcoin reserve look like?

If the US were to adopt Bitcoin as a strategic reserve asset, it would strengthen its position as the largest nation-state holder of Bitcoin and reflect Trump’s view that all remaining Bitcoin should be mined in the US.

Essentially, a Bitcoin strategic reserve asset would involve the U.S. Treasury Department holding a significant amount of Bitcoin as part of its reserve portfolio, just like they do with gold or foreign currencies.

This move would mark the US government’s official recognition of Bitcoin’s legitimacy and future use cases. The move is largely predicated on Bitcoin’s future success.

The move would put the U.S. at an advantage over global competitors and accelerate the adoption of Bitcoin as digital gold and long-term savings. But such a strategy would face significant challenges, including energy barriers, market uncertainty, and local community opposition.

The concept involves securing Bitcoin through government agencies like the Department of Defense and the Department of Energy to protect it from cyber threats, and potentially establishing a Joint Hybrid Force Component Command to manage the asset.

Trump’s recent pro-Bitcoin moves

Adding to the speculation, Trump announced that cryptocurrency advocate Senator JD Vance will join him as his vice presidential candidate in the 2024 election.

Trump has recently strongly supported Bitcoin, highlighting its geopolitical importance and warning against policies that could hinder its growth.

It is important to note that this US bitcoin reserve sentiment is based on multiple sources and can still be classified as an internet rumor. However, with the Bitcoin 2024 Conference approaching, the crypto community is eagerly awaiting any confirmation of these speculations.

It is not yet clear whether Trump will declare Bitcoin a strategic reserve asset, but the possibility has already mobilized the crypto community.