US to Establish a Strategic Bitcoin Reserve, Fulfilling a Key Election Campaign Promise

Amid rising speculation, President Donald Trump's administration is reportedly planning to establish a Strategic Bitcoin [BTC] Reserve in the United States

The Biden administration is reportedly planning to establish a Strategic Bitcoin (BTC) Reserve in the United States, fulfilling a key election campaign promise. This bold move has sparked widespread debate, both domestically and internationally, about its potential impact on national and global financial systems.

Interestingly, this development follows a recent statement by Fed Chair Jerome Powell during his press conference, where he remarked,

“We’re not allowed to own Bitcoin. But the Federal Reserve Act says what we can own and we’re not looking for a law change.”

How will this help the U.S. and nations worldwide? Industry experts like Alistair Milne from Altana Digital Currency Fund argued that maintaining these assets could effectively establish a “de facto” Bitcoin reserve, stabilizing its supply and influencing its price.

Moreover, Senator Cynthia Lummis has introduced a bill proposing the government acquire one million Bitcoins within five years, envisioning a reserve that could help address the country’s $36 trillion debt and strengthen the U.S. dollar.

That being said, the idea of a Bitcoin reserve isn’t exclusive to the U.S. — countries like Bhutan and El Salvador have already integrated Bitcoin into their national financial strategies, albeit on a smaller scale.

Additionally, a recent AMBCrypto report highlighted a growing trend—nations with struggling currencies, exacerbated by the rising strength of the dollar, are increasingly turning to Bitcoin as a strategic reserve.

For instance, Switzerland has now entered this dialogue, considering the addition of Bitcoin to its national reserves.

Russia and China are now entering the fray as well.

Should Biden continue to expand the U.S.’s Bitcoin holdings, it could lead to a significant transformation in Bitcoin’s global status and purpose.

This could influence how nations around the world view and utilize cryptocurrency in their financial systems.