Trump may create the strategic Bitcoin reserve without Congress approval
The possibility of establishing a strategic Bitcoin reserve has sparked debate among economists
David Bailey, CEO of Bitcoin Magazine, said that Donald Trump could create a Bitcoin strategic reserve without Congressional approval.
This assertion comes as discussions around the role of Bitcoin in U.S. national security and financial sovereignty gain traction amidst ongoing global economic uncertainties.
Trump’s potential to leverage executive power
According to Bailey, the president possesses the legal means to allocate federal resources towards a Bitcoin reserve under the umbrella of national security. He points out that such a move could be justified similarly to how the U.S. government maintains a strategic petroleum reserve. In a recent tweet, Bailey suggested that Trump could unilaterally authorize up to $10 billion to be invested into Bitcoin, potentially reshaping America's economic landscape.
Loading...
The rationale behind this proposal centers on the idea that Bitcoin, as a decentralized and secure asset, could serve as a hedge against economic instability and inflation. Bailey emphasized that such a strategic reserve could provide the U.S. with a unique advantage in the evolving digital economy, especially as countries like China advance their own digital currency initiatives.
A growing debate on Bitcoin and national strategy
The possibility of establishing a strategic Bitcoin reserve has sparked debate among economists, politicians, and industry insiders. Advocates argue that adopting Bitcoin at a national level could protect the U.S. dollar's status as the global reserve currency, especially if other nations begin to embrace digital assets. Critics, however, caution that such a move would be risky, given Bitcoin's price volatility and lack of regulation.
Bailey’s comments come at a time when Bitcoin is experiencing renewed interest from institutional investors and retail traders alike. The idea of a strategic Bitcoin reserve aligns with growing calls for the U.S. to remain competitive in the rapidly changing global financial system.
Plus, Trump intends to turn the US into the “crypto capital of the world.”
