Will Trump endorse bitcoin as strategic reserve asset?

In a notable development, the crypto world is awash with speculation following former President Donald Trump’s keynote speech at the Bitcoin Conference in Nashville. Trump, who once disdained bitcoin and cryptocurrencies, now appears to have fully embraced the industry. This shift was highlighted in a recent discussion between Scott Melker, host of The Wolf of All Streets podcast, and George Tung of CryptosRus.

The excitement revolves around a tweet by Dennis Porter suggesting that Trump could declare bitcoin a strategic reserve asset. Melker opened the discussion by asking Tung about the plausibility of such an announcement and its potential impact.

“I think there’s a possibility that Trump could actually say something like that,” Tung replied. He explained that while most Americans may not understand the implications of this, recognizing bitcoin as a strategic reserve would be the first official acknowledgment of its importance by the U.S. government. Such a move could spark global interest and encourage other countries, especially Germany, which has recently divested itself of significant bitcoin holdings, to do the same.

Melker highlighted the potential for a historic shift. He noted that the U.S. government holds significant amounts of bitcoin from past seizures such as the Silk Road. Transferring these assets to the treasury would effectively position bitcoin as a strategic reserve asset. If Trump makes this announcement, it would not only make international headlines, but it would also force other central banks to reconsider their stance on bitcoin.

The talk also touched on broader implications for the global economy. Tung envisioned a scenario where countries could start hoarding bitcoin along with gold, which could drive its price to unprecedented levels due to its inherent scarcity. “Bitcoin’s scarcity factor will drive prices to God only knows how much,” he said.

Melker agreed, noting that such developments could exceed even the most optimistic estimates for bitcoin’s future value. Regardless of the details, Trump is expected to make a major announcement at the conference, potentially reshaping the crypto landscape, he added.

Tung also speculated about possible political implications. With the resignation of SEC Chairman Gary Gensler and the possibility of Trump appointing a pro-crypto SEC chairman, the regulatory environment could become much more favorable to cryptocurrencies. Tung also noted that Trump could consider appointing prominent pro-bitcoin figures like BlackRock’s Larry Fink as future Treasury Secretary, further solidifying the administration’s support for the crypto industry.

The discussion concluded with Melker reflecting on the rapid changes in the political and financial landscape. He noted that Bitcoin’s emergence as a campaign issue for the 2024 presidential election was unexpected, but indicative of the growing importance of cryptocurrencies.