The U.S. can expand its strategic Bitcoin reserves through asset procurement options, not just relying on Bitcoin seized by the government.
The U.S. Secretary of the Treasury confirms that the national Bitcoin reserve will continue to grow proactively, aiming to make the U.S. a Bitcoin superpower, while ensuring transparency and budget discipline.
MAIN CONTENT
The U.S. Treasury can expand its Bitcoin reserves not only from seized assets but also through strategic buying and selling options.
The new plan helps the U.S. respond flexibly to price fluctuations, pursuing the goal of becoming a Bitcoin superpower.
Countries like Indonesia and Brazil are also considering adding Bitcoin to national reserves, increasing global competition.
What is the U.S. strategic Bitcoin reserve?
The strategic Bitcoin reserve is an initiative established under President Trump's executive order in March, based on the amount of Bitcoin forfeited due to law enforcement seizures.
According to Treasury Secretary Scott Bessent, seized Bitcoin will be the initial foundation of the reserve, laying the groundwork for the national digital asset development strategy. This marks the first time the U.S. officially recognizes Bitcoin's role as a reserve.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
Scott Bessent, U.S. Secretary of the Treasury, March 2024, source: @SecScottBessent on X
Initially, the strategic Bitcoin reserve value of the U.S. is around $15-20 billion, focused on seized assets. This reflects the strength of the U.S. in digital asset management, while providing tools for the U.S. to proactively coordinate macroeconomic policy based on cryptocurrency assets.
What is the mission of the strategic Bitcoin reserve?
The mission of the reserve is to make the U.S. the leading nation in Bitcoin, protecting its monetary position and controlling strategic capital flows in the cryptocurrency sector.
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the Bitcoin superpower of the world.
Scott Bessent, U.S. Secretary of the Treasury, March 2024, source: @SecScottBessent on X
This strategy not only helps the U.S. increase control over digital assets but also creates opportunities to capitalize on price fluctuations and respond quickly to the global market. This is a concrete step to realize the government's commitment to master the new financial trend.
How is the strategic Bitcoin reserve expanding?
The U.S. Treasury has opened up opportunities to expand the Bitcoin reserve through strategic buying and selling activities, beyond the traditional seized Bitcoin source.
Scott Bessent states that new Bitcoin purchases will adhere to budget balance principles, leveraging budget restructuring resources and seized assets without increasing taxpayer burdens.
This allows the U.S. to avoid requesting additional budget from Congress while still being able to flexibly expand Bitcoin reserves to meet national objectives. The expansion not only creates a solid foundation but also helps the U.S. maximize investment opportunities and hedge against market fluctuations.
What additional assets will the U.S. add to its reserves?
Although currently only holding Bitcoin, U.S. officials are considering adding cryptocurrencies such as Ethereum, Solana, XRP, and Cardano to diversify the reserve.
According to White House Crypto Advisor David Sacks, the Treasury and Commerce departments are exploring options to increase reserves without putting pressure on the budget. Diversification helps the U.S. leverage synergies from various major blockchain platforms around the world.
Bessent and Commerce Secretary Howard Lutnick are exploring ways to grow Bitcoin holdings, without taxpayer cost… expansion remains transparent, fiscally responsible, and strategically focused.
David Sacks, White House Cryptocurrency Advisor, March 2024
This move also helps protect the U.S. from volatility risks stemming from a single asset, while supporting a strategy to quickly adapt to the global cryptocurrency market.
Why is the new decision by the U.S. Treasury important at this time?
Scott Bessent's decision comes right after he denied the possibility of directly purchasing Bitcoin, indicating that U.S. cryptocurrency policy could change rapidly, responding flexibly to the market and international context.
Bessent is committed to ensuring that Bitcoin purchases will be made selectively, aligning with national economic goals. Caution in expanding reserves helps maintain investor confidence in the cryptocurrency market.
Acquisitions will be deliberate and aligned with economic goals.
Scott Bessent speaks about the Bitcoin purchase strategy, March 2024
President Trump's directive to establish a reserve reflects the government's recognition of the strategic importance of Bitcoin. Experts suggest this is a hallmark of a new era of monetary competition among nations with significant digital assets.
What are other countries doing with national Bitcoin reserves?
Following information from the U.S. Treasury, Bitcoin prices slightly dropped from $124,000 to around $119,000, reflecting investor sentiment awaiting new policy moves.
Not only the U.S., many other countries are also beginning to consider adding Bitcoin to national reserves to diversify assets, hedge against inflation, and reduce dependence on the USD.
Indonesia, under the direction of the Vice President, is researching adding Bitcoin to its reserves to mitigate currency risks and anticipate the trend of digital finance.
Brazil is preparing to bring the issue of establishing a national Bitcoin reserve to discussion in the House of Representatives on August 20, showcasing the globalization trend of cryptocurrency.
These moves affirm Bitcoin's increasingly important role in the national reserve asset management strategy in many major economies.
Comparing Bitcoin reserve activities between the U.S. and other countries
The table below summarizes some key features of Bitcoin reserves in the U.S., Indonesia, and Brazil:
Country Start Date Source of Bitcoin Reserve Expansion Strategy Main Goal U.S. March 2024 Seized Bitcoin Strategic buying, without raising taxes/budgets Global Bitcoin superpower Indonesia Proposed 2024 Proposed additional purchases Diversifying foreign reserves Reducing dependence on USD Brazil Planned 8/2024 Under proposal Discuss in Congress Proactively managing national assets
Frequently Asked Questions
When will the U.S. establish its strategic Bitcoin reserve?
The U.S. strategic Bitcoin reserve was established under President Trump's executive order from March 2024, initially based on Bitcoin seized by the government.
How can the U.S. Bitcoin reserve supplement its assets?
In addition to seized Bitcoin, the U.S. Treasury is considering strategic acquisition options for Bitcoin without raising taxes or seeking additional budget from Congress.
What assets might the U.S. Treasury consider adding to the reserves beyond Bitcoin?
In addition to Bitcoin, the Treasury may consider adding Ethereum, Solana, XRP, and Cardano to diversify strategic reserve assets.
What is the reason for the U.S. to add Bitcoin to its reserves?
The U.S. aims to be a leading nation in Bitcoin, increasing control over digital assets and proactively coordinating economic policy.
Do other countries besides the U.S. tend to reserve Bitcoin?
Indonesia is researching adding Bitcoin to its reserves, while Brazil will discuss this issue in the House of Representatives, reflecting the trend of globalizing cryptocurrency reserves.
Is the plan to expand the U.S. Bitcoin reserves transparent and tightly controlled?
Yes, the strategic procurement options are all aimed at transparency, budget accountability, ensuring alignment with national economic goals.
Does the U.S. expanding its Bitcoin reserves affect the market?
Information about U.S. policy and reserves can significantly impact Bitcoin prices, influencing sentiment and capital flows in the global market.
Source: https://tintucbitcoin.com/bo-truong-tai-chinh-my-doi-y-bitcoin/
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