Trump Announces Bitcoin Reserve
President Donald Trump announced on Thursday that he would be making a federal bitcoin reserve.
In a series of executive orders Thursday night, the president signed an order that would establish a strategic bitcoin reserve within the U.S. federal government with the purpose of levying bitcoin as a reserve currency to USD and bullion.
The announcement came in the wake of a "crypto summit" which will be held in the White House with some of America's top business leaders.
Stated by David Sacks on the platform X, the reserve would acquire reserves already held by the government, and leaves the door open to further acquirement of cryptocurrency, perhaps beyond crypto, like Ethereum.
It is estimated that the U.S. government possesses ownership of over 200,000 units of bitcoin.
The value of bitcoin, in reaction to the Trump economic policy, surged in mere hours from the announcement, with it reaching nearly $90,000 in valuation per bitcoin.
Although the currency is very volatile, it provides another method for the government to manage the plummeting value of the USD, which is only backed up by gold. Combined with interest rates, as long as the value of the bitcoin remains relatively high, the USD will strengthen.
