By an executive order, the US President has established a Strategic Bitcoin Reserve (SBR) and a stockpile of other digital assets.
As we know, Bitcoin is the original cryptocurrency and its supply is limited. Thus, having its reserve is strategically advantageous.
The initial contribution of capital is derived from the forfeiture of assets by the US Department of Treasury since these were involved in criminal or civil proceedings. The other agencies too will transfer Bitcoin owned by them to SBR.
The order also creates a US Digital Asset Stockpile consisting of assets other than Bitcoin owned by the Department of Treasury and derived from criminal or civil asset forfeiture.
There is no clear policy right now how these assets are managed. There is lack of accountability. There is insufficient exploration of options to centralize, secure and maximize their value.
The US government, according to an estimate, owns 2 lac Bitcoins, though there is never a complete audit. The E.O. directs of full accounting of all digital asset holdings of the federal government.
There will not be any selling of Bitcoins deposited in this reserve. It will be maintained as a store of reserve assets. The Secretaries of Treasury and Commerce have been authorized to develop strategies for acquiring additional Bitcoin.
It is a strategic advantage for the US to create this Reserve since there is a fixed supply of 21 million coins. There should not be any premature sales.
The stockpile will have Ethereum, XRP, Solana and Cardano, apart from Bitcoins.
The US will not acquire additional assets for the Reserve beyond those derived from forfeitures.
The full accounting will be provided of all digital assets to the Secretory of Treasury and the Presidents Working Group on Digital Asset Market.
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