Digital Fort Knox: Trump signs executive order for US strategic bitcoin reserve

President Donald Trump today signed an executive order creating a Strategic Bitcoin Reserve and other digital currencies, an account whose value is currently worth billions of dollars.

It’s estimated that there is close to 200,000 bitcoin held by the U.S. government, although that hasn’t yet ever been a comprehensive audit. The order also asks for a U.S. Digital Asset Stockpile, which, like the bitcoin reserve, will be managed by the Treasury Department. These digital currencies have all at one time been forfeited to the government.

“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” explained David Sachs, an entrepreneur who’s now Trump’s artificial intelligence and crypto czar. Sachs added that the account “will not cost taxpayers a dime” and will have a value similar to what’s stored in “Fort Knox.” The coins will not be for sale, with Sachs saying premature sales of bitcoin have already cost the U.S. $17 million.

“The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies have no incremental costs on American taxpayers,” he said, adding that if the account does see additional coins, they will also be a result of future forfeitures.

“Currently, no clear policy exists for managing these assets, leading to a lack of accountability and inadequate exploration of options to centralize, secure, or maximize their value,” said a White House press release. The article talked about the U.S.’s crypto stocks being in a kind of “limbo,” something the government wants to fix by ensuring “proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings.”

Trump will attend a “digital asset summit” held in Washington D.C. this Friday, where he’s likely to announce his commitment to make the U.S. what he’s previously called the “crypto capital of the world.” He said he felt “very positive and open-minded to cryptocurrency companies and all things related to this new and burgeoning industry,” adding, “Our country must be the leader in the field.”

The fact that the U.S. is getting serious about bitcoin will no doubt add a sheen to the so-called “digital gold” that will greatly affect its value. So far, its value has soared and come crashing back down, multiple times.

The move doesn’t come without criticism, with the New York Times calling it an “audacious idea that has been widely criticized as a scheme to enrich crypto investors.” The critics state the order has been designed to increase the value of bitcoin, a boon to investors who already hold significant amounts. There is also concern that the U.S. is playing with fire by putting faith in such a volatile asset.

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