MicroStrategy co-founder and executive chairman Michael Saylor said Monday that the incoming Donald Trump administration was serious about setting up a U.S. strategic Bitcoin (CRYPTO: BTC) reserve.
What happened: During a CNBC interview, Saylor stressed the importance of "buying the future" if one knows where the money is going.
"All the capital outside the U.S. and all the 20th-century antiquated capital is going to flow into digital assets and the Bitcoin network," the Bitcoin bull said. "The logical thing for the U.S. is to buy it now and own the future."
He added that the government could buy as much as 20–25% of the Bitcoin network by selling its gold reserves or by borrowing a "small" amount of money.
"The Bitcoin network is going to go up by a factor of 100. You might as well buy it before ."
Saylor also urged the incoming administration to take the lead in establishing a digital assets framework, outlining clear definitions of different entities and fixing the responsibilities of participants.
See Also: If You Invested $1,000 In Bitcoin When The First Bitcoin ETF Was Filed, Here's How Much You'd Have Today
Why It Matters: Saylor's remarks come amid reports of President-elect Trump exploring the possibility of issuing an executive order to create a strategic Bitcoin reserve.
Last week, he also pledged to "do something great with crypto" when queried about plans for a national Bitcoin stockpile.
A bill has already been proposed by Sen. Cynthia Lummis (R-Wy.), called the BITCOIN Act, to create a strategic reserve in Bitcoin to support America's balance sheet and address its mounting debt, which topped $36 trillion this year.
The bill outlines a program to purchase 1 million BTCs, about 5% of Bitcoin's total supply, over a period of five years, with a minimum holding period of 20 years.
The purchase of this proportion could give further impetus to Bitcoin, already on a record-breaking run. This could in turn impart more volatility to MicroStrategy stock, which is a de facto Bitcoin proxy.
Price Action: At the time of writing, Bitcoin was exchanging hands at $106,604.85, up 1.80% in the last 24 hours, according to data from Benzinga Pro.
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