President Donald Trump has signed an executive order to establish strategic reserves for cryptocurrency using tokens already owned by the government. venture capitalist David Sachs said it was like establishing a “Digital Fort Knox.”
Despite a frenzied social media response from Crypto executives to the news later Thursday, Bitcoin initially cut by 5.7% as some Crypto enthusiasts wanted a solid US plan to buy new tokens.
However, the major digital assets later recovered most of their losses, stabilizing around $89,410 as of 8:10am in New York on Friday.
Under Trump's directive, the federal government's cryptocurrency reserves will be built around an estimated $17 billion worth of Bitcoin Reserve accumulated through legal seizures.
The executive order also directs institutions to explore the path of Bitcoin acquisitions further, without burdening taxpayers.
Venture capitalist Sachs, named his crypto and artificial intelligence policy emperor from Trump, framed an executive order to establish a national stockpile of Bitcoin and other digital currencies as a bold step towards solidifying the US position as a global leader in cryptocurrency.
“The executive order highlights President Trump's commitment to making the United States “global crypto capital,” Sachs said in a social media post, highlighting that the administration views Bitcoin as an unsold strategic asset and likens it to “Digital Fort Knox.”
Sacks highlighted the administration's broader strategy to nurture the crypto industry, including removing regulatory measures against major US digital asset companies.
He said the “Crypto Summit” with industry leaders hosted at the White House on Friday was another sign of Trump's commitment to fostering digital finance innovation.
Policy is not without controversy.
Some critics argue that creating a national cryptocurrency reserve could artificially inflate the value of Bitcoin, potentially bringing disproportionate benefits to existing crypto investors.
Others warn that Bitcoin volatility is linked to national monetary policy, a dangerous asset.
But Sack and other supporters argue against securing Bitcoin, positioning the US at the forefront of a future where digital assets play a central role in global finance.
Some supporters even see it as a potential mechanism to reduce the country's $36 trillion national debt.
The administration's code embrace comes when Trump himself deepens his involvement in the industry.
Last year he launched World Liberty Financial, a company that offers its own digital currency, WLFI.
Furthermore, just before his inauguration, he introduced Memecoin, a kind of cryptocurrency linked to online culture and celebrity branding.
Sachs dismissed concerns about conflicts of interest and instead argued that Trump's direct involvement with the sector underscored his belief in the potential for change.
He pointed to Trump's campaign promises, including those made in his speech in Nashville last July.
That pledge became a formal policy through the executive order.
Sack remains immovable in his claim that the initiative will encourage widespread adoption of digital assets and ensure America will go ahead of the curve in a rapidly evolving financial environment.
