he US President, Donald Trump, signed an executive order on Thursday in order to establish a strategic bitcoin reserve, which was only a day after a meeting
at the White House with executives from the cryptocurrency industry.
The reserve will also be capitalized with bitcoin owned from the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, said the billionaire David Sacks in a social media post on X, reported Reuters.
From the White House crypto summit held this Friday, the members participating are expecting the event to stage the announcement of Trump’s plans of building a strategic reserve which contains bitcoin and other four cryptocurrencies.
However, earlier this week, Trump announced the names of five digital assets he expected to include in this reserve, which caused the market value of each asset to spike. The president mentioned Bitcoin, Ethereum, Solana, Cardano, and XRP.
However, it is still unclear how the reserve would work or even how it would benefit taxpayers. Sacks said the federal government will have a strategy to maximize the value of its holdings in such a reserve without providing any other details.
Sacks said, "The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency, often called 'digital gold”.
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Even more so, Trump’s executive order directed the secretaries of Treasury and Commerce to come up with a “budget-neutral strategy" for the acquisition of additional bitcoin that has no “incremental costs” on taxpayers.
It is also worth mentioning that for a short period of time, Bitcoin fell down more than 5% to below $85000 after Sacks' posts. As a result, Charles Edwards, the founder of the Bitcoin-focused hedge fund Capriole Investments, wrote in an X post “This is the most underwhelming and disappointing outcome we could have expected for this week,". He also added “No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in lipstick."
More so, Trump’s moves for supporting the crypto industry, which spent millions of dollars backing him as well as other Republicans in the November elections, have also raised some concerns that came from some of the conservatives and crypto backers.
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