In a notable move, US President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve. This decision comes before his scheduled meeting with representatives from the cryptocurrency sector at the White House the following day.
According to David Sacks, the White House crypto czar and former PayPal Chief Operating Officer, the reserve will be funded using bitcoin confiscated by the federal government as part of legal actions involving criminal or civil asset forfeiture procedures. Sacks shared this information on the social media platform X.
Following his victory in the 2024 election, Trump appointed Sacks as his “White House A.I. & Crypto Czar” in December. As part of the upcoming White House crypto summit on Friday, attendees anticipate Trump formally announcing his intentions to establish a strategic reserve consisting of not only bitcoin but also four other cryptocurrencies.
Earlier this week, Trump identified the five digital assets he plans to include in the reserve. This announcement led to a surge in the market value of each cryptocurrency. The assets outlined by the president are bitcoin, ether, XRP, solana, and cardano.
The operational details of this proposed reserve remain unclear, including how it will benefit taxpayers. Sacks mentioned that the US government will implement a strategy to optimize the value of its holdings within this reserve, although specific tactics were not disclosed.
Sacks emphasized that any bitcoin deposited into the reserve will not be sold but instead retained as a long-term asset. He likened the reserve to a digital Fort Knox, referring to bitcoin as “digital gold.”
Stepping into numerical perspective, Sacks estimated that the US government currently possesses approximately 200,000 bitcoins. Additionally, Sacks claimed that the premature liquidation of these cryptocurrency holdings has resulted in a $17 billion loss for American taxpayers. However, the methodology behind these estimates was not disclosed.
Further scrutiny has arisen with regards to potential conflict of interest concerns surrounding Trump’s support for the cryptocurrency sector. Notably, Trump’s family has introduced cryptocurrency meme coins, and the president maintains a stake in World Liberty Financial, a crypto platform.
