There is growing speculation on how important the Bitcoin cryptocurrency could become to the US Government over the coming years. With former President Donald Trump looking to return to the White House following this year’s US election, the future of cryptocurrency in the country is up for debate. Trump has considered himself the first “crypto president” if elected, and is a supporter of BTC. Now, CNBC thinks that thanks to the former President, the US Government may hold Bitcoin as a reserve currency.
CNBC Bitcoin analysts suggest that while it may be a difficult task, a Trump-led US Government can begin holding BTC in reserve. There has been growing speculation for months that this can happen if Trump is elected, as the US is the largest holder of BTC in the world. The US Justice Department holds around 200,000 Bitcoin, worth $13B at press time.
The suggestion is that if the US Justice Department continues its spotty sales of Bitcoin, it won’t be positive for the asset’s price. However, if they decide to transfer the Bitcoin to the Department of Treasury, they can hold billions worth of the top cryptocurrency, and cause a price surge. Under a Bitcoin supporter like Trump, this decision would be a difficult one to execute, but is possible.
Could Donald Trump Announce Bitcoin As A US Government Reserve Currency
Donald Trump has been predicted by insiders to announce a plan for Bitcoin as a US reserve asset. In a post to X (formerly Twitter), Simon Dixon shared the rumors that he had been hearing leading up to the Bitcoin Conference 2024.
Such an unveiling would certainly be massive for crypto and BTC. Throughout his reelection campaign, Donald Trump has expressed his advocacy for cryptocurrencies. Speaking to Bloomberg, he noted that the asset class is “not going away.” Moreover, he said that the US must become a global crypto leader.
The US Government has the potential to be one of the biggest hodlers of Bitcoin if it decides to hold Bitcoin as a reserve currency. The asset continues to grow, and as more hype and implementation rises around BTC, the more valuable it will become. There is also potential that the upcoming launch of Spot Ethereum ETFs could boom Bitcoin as well, giving the BTC ETFs healthy competition on the market.