Emily Walker
Following President-elect Donald Trump’s recent announcement about Bitcoin being used as a strategic reserve asset for the United States, discussions within the cryptocurrency sector have surged regarding how this initiative might unfold and its timing.
This idea, which Trump and pro-crypto Senator Cynthia Lummis presented earlier this year at the 2024 National Bitcoin Conference in Nashville, has attracted considerable interest as significant financial institutions consider its consequences.
Efforts to Establish a Bitcoin Reserve
BlackRock, recognized as the largest asset manager globally and a prominent issuer of cryptocurrency exchange-traded funds (ETFs), reportedly supports the establishment of a strategic Bitcoin reserve.
According to statements from Trump and the proposed legislation by Senator Lummis, this strategy is intended to tackle the alarming national debt of about $36 trillion by utilizing Bitcoin (BTC) as a unique digital asset.
Dennis Porter, the co-founder and CEO of Satoshi Action Fund (SAF), confirmed that BlackRock is in favor of this initiative, while emphasizing that the Trump administration is moving forward with plans to create the reserve via an executive order.
Porter stated his conversations with US Senate offices indicate substantial support for this strategy, asserting, “Game on, President Trump. The race is on.” He stressed the urgency of the matter, implying Trump’s team is eager to implement the reserve quickly to maintain a lead over any potential state legislation.
Potential Bitcoin Legislation Before Trump’s Inauguration?
Porter further revealed he is pushing to implement strategic Bitcoin reserve laws at the state level, potentially even before any federal order. He remains optimistic that such measures could be enacted shortly after Trump takes office.
Interestingly, Trump’s proposal has garnered interest beyond US borders, with Porter noting he has been invited to address Congress and parliamentary members in a European nation and a country in Latin America about creating similar Bitcoin reserves.
Simultaneously, BlackRock published a report showcasing renewed optimism about regulatory frameworks for Bitcoin and digital assets, especially following the recent US elections.
The report indicates that Trump’s pledge for a strategic Bitcoin reserve, along with the electoral victories of pro-crypto lawmakers in both the House and Senate, could foster a favorable economic setting for the broader adoption of Bitcoin.
Robbie Mitchnick, BlackRock’s Head of Digital Assets, emphasized that while Bitcoin’s long-term use will primarily stem from its role as a global monetary alternative, other elements, such as decreasing real interest rates, may also boost its adoption.
As of the article’s writing, Bitcoin was trading at $92,330, nearing its record high of $93,300 achieved during last week’s upward trend.
Featured image from DALL-E, chart from TradingView.com