As President-elect Donald Trump prepares to take office, the possibility of a US national Bitcoin reserve is sparking fresh debates within the crypto community.
Bitcoin Magazine CEO David Bailey recently suggested that Trump could designate Bitcoin as a “strategic reserve asset” through executive authority, bypassing the need for Congressional approval for initial investments.
Bailey floated the idea on November 15, claiming that a BTC acquisition program worth tens of billions could be launched without legislative hurdles.
Drawing parallels to MicroStrategy, the largest corporate Bitcoin holder with over 279,000 BTC, Bailey argued that such a strategy could boost the US’s financial standing.
However, he acknowledged that larger purchases would likely require Congress’s backing.
The idea of a national Bitcoin reserve isn’t new but has gained traction with Trump’s recent campaign rhetoric and growing legislative support.
During the Bitcoin 2024 conference, Trump pledged to maintain the government’s current Bitcoin holdings, estimated at over 200,000 BTC.
Senator Cynthia Lummis also introduced a bill proposing annual government purchases of up to 200,000 BTC over five years, potentially accumulating 1 million BTC—around 5% of Bitcoin’s total supply.
Proponents, including MicroStrategy’s executive chairman Michael Saylor, argue that treating Bitcoin as a “digital gold” reserve could bolster economic resilience, enhance the US’s financial position, and encourage global adoption of Bitcoin.
Saylor recently suggested on CNBC that the rising value of Bitcoin could offset as much as $16 trillion in US debt.
Despite the enthusiasm, the proposal has its share of detractors. Critics like Miles Jennings, General Counsel at a16z crypto, argue that a national Bitcoin reserve could unfairly benefit current Bitcoin holders.
Jennings described it as a “wealth transfer” from taxpayers to crypto investors, emphasizing that policies favouring crypto holders over broader economic needs might not serve public interest.
