David Sachs, the newly appointed “crypto czar” under President Donald Trump, has indicated the administration’s interest in integrating Bitcoin into the United States’ financial strategy.
Speaking at a press conference in Washington, Sachs discussed the administration’s pro-crypto stance and consideration of a bitcoin reserve for a proposed U.S. sovereign wealth fund.
Sachs, responding to questions about the role of cryptocurrencies in the new capital fund, stressed that evaluating the inclusion of bitcoin is a key task for the administration’s task force. He noted that the group is awaiting confirmation from certain cabinet secretaries before proceeding with their assessment.
The crypto tsar explained that while a sovereign wealth fund and a bitcoin reserve are different concepts, the administration is actively exploring how digital currencies like bitcoin could play a role in government finances. Howard Lutnick, Trump’s nominee for commerce secretary, is set to take the lead on creating a sovereign wealth fund.
The announcement comes after President Trump signed an executive order on Monday to create a sovereign wealth fund. The fund is intended to serve as a federal investment vehicle to increase government revenue by investing in strategic assets, with analysts suggesting that bitcoin could be a potential asset under consideration.
President Trump has also expressed interest in using the fund to acquire strategic holdings, including a potential bid for social media platform TikTok, which is currently under scrutiny by regulators due to its Chinese ownership.
CoinShares head of research James Butterfill expressed support for the idea of including Bitcoin in the fund. He highlighted the commitment to crypto by key figures in the fund, such as Treasury Secretary Scott Bessant, and suggested that including Bitcoin is a smart move from the fund manager’s perspective.
Butterfill compared the US situation to Norway's use of oil revenues, suggesting that the US could similarly benefit from investing in assets like Bitcoin to solve its debt problems and create new sources of income.
The CoinShares executive argued that the sovereign fund could potentially serve dual purposes, functioning as an investment vehicle and a strategic reserve for Bitcoin.
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