Strategic reserve assets
I'm reprinting last week's investing.com article. It looks like it has extremely important potential.
(quoted below)
There is speculation on social media that Donald Trump, a former American president and presidential candidate of the Republican Party, may declare Bitcoin as a “strategic reserve asset” at the cryptocurrency conference to be held in Nashville at the end of this month.
It is widely anticipated that Mr. Trump will give a speech at the Bitcoin conference in Nashville scheduled for the end of this month.
Dennis Porter, co-founder and chief executive of Satoshi Action Fund, said he received the news from a source he believed he could trust.
Incorporating Bitcoin into the US Treasury as a “strategic reserve” is a natural decision, and if the US shows this move, major changes will occur. The rest of the world will also notice the need to maintain bitcoin reserves,” he said on social media.
Market experts have pointed out that if Bitcoin is recognized as a strategic reserve asset of the United States, it will bring about major changes in the country's economic policy.
“This measure will take advantage of Bitcoin's decentralized nature and global acceptance, and improve the durability and stability of the economy. It will be a decisive event supporting the idea that Bitcoin is like digital gold,” they explain.
Trump previously expressed strong support for Bitcoin and emphasized its strategic significance. He warned that unfavorable policies against Bitcoin could give competitors such as China and Russia an advantage. These statements not only established him as a friendly candidate for Bitcoin, but also initiated discussions about the possibility that Bitcoin could be viewed as a strategic reserve asset.
“This proposal has the potential to increase Bitcoin's market value, attract new investors, and increase its credibility. Using confiscated assets to establish this reserve asset is an efficient way to manage these assets, thereby reducing the need to buy additional bitcoins on the open market,” the market analyst stated.
Nevertheless, they see this cryptocurrency promotion position as part of Trump's current political tactics.
“The firm expectations and actual implementation of this proposal will become more apparent after the election, which is the right time to draw definitive conclusions,” they said.
Mr. Vivek Ramaswami, who is an adviser to Mr. Trump, has also proposed supporting the US dollar with a commodity basket including Bitcoin. Similarly, Robert F. Kennedy Jr. recommended backing some US Treasury securities with a strong currency, and Bitcoin is one of them.
Senator Cynthia Lummis has expressed support for the idea of distributing foreign exchange reserves of the Federal Reserve (Fed) into bitcoins.
Other politicians who agree with Bitcoin are promoting the idea of making Bitcoin a strategic reserve asset. They argue that if the value of bitcoins rises, countries will compete to acquire bitcoins, just like other limited resources such as gold, silver, platinum, and oil reserves.
They argue that bitcoin, which can be expected to have high returns, is an attractive asset that sovereign nations should acquire at the moment.
Can the US use confiscated assets?
The United States is at the forefront in terms of holding bitcoins that have been confiscated in large quantities from criminal acts. There are also reports that estimate that the number of bitcoins held by the US government exceeds 0.2 million.
If Mr. Trump becomes the first president to openly support bitcoin, there is a possibility that the United States will move in the direction of utilizing bitcoin as a strategic reserve asset.
“Basically, this shows that the Trump administration may view bitcoin as a valuable resource worth accumulating in significant amounts. If they put this into action, it means that the US government will hold a significant amount of bitcoins,” the market analyst explained.
They pointed out that the US has certainly obtained a “significant amount” of bitcoins “through years of criminal investigations.”
“In general, this is good news, but it's not easy to predict the impact on Bitcoin prices. The general public has enthusiastically begun to buy bitcoins, but if the US government does not put in additional funds, we may witness a drop in prices,” they added.
“This shows a real commitment to cryptocurrency regulation, and may not simply be a topic used for political campaigns,” they concluded.
President Trump is changing his negative stance on cryptocurrencies until now. In 2019, he criticized Bitcoin and other digital currencies, pointing out their price instability and the possibility of illegal use. However, at a dinner held at Mar-a-Lago at the beginning of this year, they called on voters to support themselves if they agree with cryptocurrency assets.
Cryptocurrency has now become an important topic in political campaigns and goes beyond simple references aimed at pleasing specific voter groups and political action committees. This sector, which has been seeking official approval for a long time, now sees this reflected by Mr. Trump's participation in meetings focused on Bitcoin.
This article was written and translated with the assistance of artificial intelligence and reviewed by editors. Please see our terms of use for details.
It is widely anticipated that Mr. Trump will give a speech at the Bitcoin conference in Nashville scheduled for the end of this month.
Dennis Porter, co-founder and chief executive of Satoshi Action Fund, said he received the news from a source he believed he could trust.
Incorporating Bitcoin into the US Treasury as a “strategic reserve” is a natural decision, and if the US shows this move, major changes will occur. The rest of the world will also notice the need to maintain bitcoin reserves,” he said on social media.
Market experts have pointed out that if Bitcoin is recognized as a strategic reserve asset of the United States, it will bring about major changes in the country's economic policy.
“This measure will take advantage of Bitcoin's decentralized nature and global acceptance, and improve the durability and stability of the economy. It will be a decisive event supporting the idea that Bitcoin is like digital gold,” they explain.
Trump previously expressed strong support for Bitcoin and emphasized its strategic significance. He warned that unfavorable policies against Bitcoin could give competitors such as China and Russia an advantage. These statements not only established him as a friendly candidate for Bitcoin, but also initiated discussions about the possibility that Bitcoin could be viewed as a strategic reserve asset.
“This proposal has the potential to increase Bitcoin's market value, attract new investors, and increase its credibility. Using confiscated assets to establish this reserve asset is an efficient way to manage these assets, thereby reducing the need to buy additional bitcoins on the open market,” the market analyst stated.
Nevertheless, they see this cryptocurrency promotion position as part of Trump's current political tactics.
“The firm expectations and actual implementation of this proposal will become more apparent after the election, which is the right time to draw definitive conclusions,” they said.
Mr. Vivek Ramaswami, who is an adviser to Mr. Trump, has also proposed supporting the US dollar with a commodity basket including Bitcoin. Similarly, Robert F. Kennedy Jr. recommended backing some US Treasury securities with a strong currency, and Bitcoin is one of them.
Senator Cynthia Lummis has expressed support for the idea of distributing foreign exchange reserves of the Federal Reserve (Fed) into bitcoins.
Other politicians who agree with Bitcoin are promoting the idea of making Bitcoin a strategic reserve asset. They argue that if the value of bitcoins rises, countries will compete to acquire bitcoins, just like other limited resources such as gold, silver, platinum, and oil reserves.
They argue that bitcoin, which can be expected to have high returns, is an attractive asset that sovereign nations should acquire at the moment.
Can the US use confiscated assets?
The United States is at the forefront in terms of holding bitcoins that have been confiscated in large quantities from criminal acts. There are also reports that estimate that the number of bitcoins held by the US government exceeds 0.2 million.
If Mr. Trump becomes the first president to openly support bitcoin, there is a possibility that the United States will move in the direction of utilizing bitcoin as a strategic reserve asset.
“Basically, this shows that the Trump administration may view bitcoin as a valuable resource worth accumulating in significant amounts. If they put this into action, it means that the US government will hold a significant amount of bitcoins,” the market analyst explained.
They pointed out that the US has certainly obtained a “significant amount” of bitcoins “through years of criminal investigations.”
“In general, this is good news, but it's not easy to predict the impact on Bitcoin prices. The general public has enthusiastically begun to buy bitcoins, but if the US government does not put in additional funds, we may witness a drop in prices,” they added.
“This shows a real commitment to cryptocurrency regulation, and may not simply be a topic used for political campaigns,” they concluded.
President Trump is changing his negative stance on cryptocurrencies until now. In 2019, he criticized Bitcoin and other digital currencies, pointing out their price instability and the possibility of illegal use. However, at a dinner held at Mar-a-Lago at the beginning of this year, they called on voters to support themselves if they agree with cryptocurrency assets.
Cryptocurrency has now become an important topic in political campaigns and goes beyond simple references aimed at pleasing specific voter groups and political action committees. This sector, which has been seeking official approval for a long time, now sees this reflected by Mr. Trump's participation in meetings focused on Bitcoin.
This article was written and translated with the assistance of artificial intelligence and reviewed by editors. Please see our terms of use for details.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
米株80%日株20% 暗号株は総額の約40%以内
日本株は小型バイオ株中心 円高対応が課題
時折 ネコ画像付きで投稿します
28Followers
107Following
97Visitors
Follow
Montefibre OP : While saying that there are movements like the following in the US government, is it Trump that wants to raise BTC, the Republican Party vs. the government that wants to lower the Democratic Party? It's a battle under the surface. The U.S. Government moved some BTC from its portfolio to Coinbase Prime.
Will this spark another government-sponsored wave of sell pressure?