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The proposal to incorporate Bitcoin into the strategic reserves of the United States would be closer than assumed. In that sense, the president of the North American country, Donald Trump, would have his sights set on the exchange stabilization fund (ESF) of the Treasury Department.
This is a fund made up of $200 billion dollars, which the president could use to purchase reserve assets. The new vision of the US authorities under Trump is precisely that BTC is a store of value. The latter is sufficient argument for the world’s leading economy to acquire the currency and add it to strategic reserves.
According to the founder of the Satoshi Act Fund, Dennis Porter, the president would soon use the ESF funds after his inauguration. To do this, he would use an executive order, which allows him to get to work without the necessary approval from Congress.
«The Treasury, through the Exchange Stabilization Fund, has the authority to stabilize the dollar by purchasing foreign currency. “Trump will use that fund to buy Bitcoin,” Porter said on his X account.
I can confirm that Trump is exploring an Executive Order creating a ‘Strategic Bitcoin Reserve.’ The Treasury, through the Exchange Stabilization Fund, has the authority to stabilize the dollar by buying currencies.
Trump will use this fund to buy Bitcoin.
— Dennis Porter (@Dennis_Porter_) December 15, 2024
It is almost a fact that the US will have strategic reserves in Bitcoin
Trump’s promise to add Bitcoin to the strategic reserves of the United States seems not to remain just words. Since July, when the tycoon formulated that proposal at the Bitcoin 2024 Conference, expectations have been enormous. Some experts believe that this would open the doors for the Cryptocurrency to definitively surpass gold in market capitalization.
Likewise, this momentous step of purchasing Bitcoin could be emulated by other countries, including rival powers to the United States such as Russia and China. Simply put, 2025 could be the year BTC price takes off as a result of large-scale adoption for an asset with finite supply.
As is known, the issuance of Bitcoin has a ceiling of 21 million coins. Considering the number of currencies available for trade, if the G7 countries decided to have individual reserves of 1 million bitcoins, they probably would not be able to do so.
The latter considers factors such as the fact that millions of BTC are definitively lost. Furthermore, in wallets like those of Satoshi Nakamoto, MicroStrategy and other large whales there are amounts of tokens that will not move for decades or ever.
With this in perspective, it can be said that the decision to add Bitcoin to strategic reserves will truly allow Bitcoin to dethrone gold from its millennia-long reign as the most valuable asset in the world.
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