Trump’s official cryptocurrency reserves have triggered sales. Photo: Shutterstock
The defenders of cryptocurrencies urge calm after the creation of national national cryptocurrency reserves by US President Donald Trump triggered sales as investors treated the implications of a policy that says an expert: “delivered almost nothing”.
The new funds – which include a Bitcoin Strategic Reserve (SBR) dedicated exclusively to Bitcoin, and a stock of American digital asset (DAS) to manage other cryptocurrencies – were announcement at the inaugural white house of this month cryptocurrency summit.
Bitcoin “is the original cryptocurrency … and has never been hacked”, Trump executive decree said by establishing reserves as vehicles for “orderly and strategic management” of any cryptocurrency held by all American ministries.
The government has entered the “large amount of BTC” of the forfeiture of criminal or civilian assets, but, it adds: “did not implement policy to maximize the strategic position of the BTC as a single value store in the global financial system.”
The departments have already been left to manage the crypto confiscated by themselves, many with a simple fact of flowing the assets and others selling them in a random process than the White House said has already cost the government more than $ 27 billion (17 billion US dollars).
The SBR will initially contain all the Bitcoins held by the US Treasury Department, but all the other American government services now have 30 days for inventory their assets in cryptography and weigh the legal implications to transfer them to the SBR.
The government will not buy additional assets for DAS – which will understand Bitcoin, ether, xrp, cardano and the troubled Solaraon which Trump is clean controversial $ Trump Coin is based – and will not sell SBR bitcoin.
White House Crypto David Sacks said that the US government has around 200,000 bitcoins, worth around 28.7 billion dollars at the time of the announcement – with agencies authorized to buy more if they “impose no additional cost on … taxpayers”.
“This decision exploits the power of digital assets for national prosperity, rather than letting them languish in the limbo,” notes the order, promising that the new structure “will ensure appropriate surveillance, precise monitoring and a coherent approach” of the crypto.
Sometimes the Brosses get what they asked for
Trump’s rhetoric on the normalization of the government’s approach to cryptocurrency was a regular characteristic of its electoral campaign – and the creation of SBR and the DAS an achievement of its promises to an industry that given Tens of millions in response.
However, even if Trump has established what the bags called “a digital fort Knox” for cryptocurrency – and loose Restrictions on banks to buy crypto – investors started loss their assets in a movement that saw Bitcoin value Lower by almost 12% in a few days.
A lot offbeat Their investments at floors – lower -risk cryptocurrencies are fixed to fiduciary currencies such as the US dollar – whose collective value jumped $ 12.3 billion ($ 7.7 billion) in February while investors responded to an increase in financial instability.
“On things, Trump has held his promise to the crypto industry,” said Kai Wawrzinek, co-founder of Impossible Cloud Network, “But if this reimburses the contribution he made to win the elections is questionable.”
“Without solid plans to buy other parts mentioned, and in fact, Trump stressing that the taxpayer would not contribute to a single penny to such a company, a reserve of documents already in reserve seems to be an easy task.”
Strip the flames of cryptography policy
Whatever its shortcomings, Trump’s announcement of an official crypto policy seems to have standardized attitudes towards cryptographic participations – with Senators in the American State of Texas passage legislation which would establish a similar reserve at the level of the state.
The legislators argued that investment in the crypto would protect the state economy against the intervention of the central bank and the manipulation of the offer of the value of the US dollar – echoing the allegations of manipulation of currencies China and others.
It remains to be seen whether the cryptocurrency reserve policy could trigger similar movements here, with study policies, but the Australian reserve bank is long skeptical about the role of Bitcoin or Central Bank Digital Currency (CBDC).
The United States now managing cryptocurrency and 23 other American states envisaged similar movements, feeling changes quickly-and experts think that political clarity will resonate with institutional investors, central banks and sovereign funds.
“Bitcoin is no stranger to excessive market reactions,” said Nigel Green, CEO of Financial Advisory Devere Group, who qualified the policy of “change of game” and noted that “trade in an immediate feeling rather than long -term implications … creates opportunities”.
“This decree makes it more likely that Bitcoin will be a geopolitically important active in the future,” he added, predicting it “will probably be considered a validation moment for the role of Bitcoin in the financial system, rather than a concern”.
