At the Bitcoin Conference in Nashville, former US President Donald Trump pledged to create a "strategic national Bitcoin reserve." He promised that the government would never sell seized Bitcoin, aiming to solidify his support among cryptocurrency enthusiasts and boost his campaign. Trump’s commitment marks a significant policy shift, as he previously criticised digital assets.
Trump Outlines Crypto Vision and Criticises Current Administration
During his speech to over 3,000 attendees, Trump emphasised the importance of the US leading in Bitcoin mining and minting. He outlined a comprehensive crypto policy, including stablecoin regulation and the right to self-custody BTC. Trump drew a parallel between the potential of cryptocurrencies and the steel industry of a century ago, predicting that Bitcoin could one day surpass gold in value. He also criticised the current administration, warning that a Democratic victory would be detrimental to the crypto industry. In a move that received enthusiastic applause, Trump vowed to fire SEC Chair Gary Gensler and announced plans to form a Bitcoin advisory council if elected.
Trump's Bitcoin Conference Speech Alters Crypto Political Dynamics
Trump’s speech at the Bitcoin Conference has significantly reshaped political alignments within the cryptocurrency sector. By declaring himself the crypto industry’s candidate, he is now attracting support from individuals who previously backed Democratic candidates. This shift contrasts sharply with the Biden administration's approach, which has not actively courted crypto supporters. President Biden’s earlier dismissal of Trump’s NFT buyers as "suckers" has further alienated the crypto community. With Vice President Kamala Harris potentially stepping up as the Democratic nominee, some lawmakers are pushing for a more crypto-friendly approach, although no major changes have been observed yet.
Hong Kong Considers Bitcoin Integration into Financial Reserves
Trump is not alone in his ambitions for Bitcoin. In Hong Kong, Legislative Council Member Johnny Ng has announced plans to explore the feasibility and benefits of incorporating Bitcoin into the region's financial reserves. Ng's proposal, inspired partly by Trump's speech, reflects the growing global recognition of Bitcoin as "digital gold" due to its perceived value and potential as a hedge against inflation. Ng believes that considering Bitcoin in strategic fiscal reserves could enhance Hong Kong’s economic framework under appropriate regulatory conditions. He also highlighted the need for thorough research and adherence to existing regulations to ensure a strategic and secure integration of Bitcoin into Hong Kong’s fiscal reserves.
Cantor Fitzgerald Launches Bitcoin Financing Business with $2 Billion Initiative
In addition to governmental interest, the financial sector is also making significant moves in the Bitcoin market. Cantor Fitzgerald, a major financial services firm, announced the launch of a Bitcoin financing business. CEO Howard Lutnick revealed plans to start with $2 billion in lending, with the potential to expand this facility in $2 billion increments as needed. Cantor Fitzgerald already has a presence in the crypto space, conducting business with stablecoin issuer Tether and holding a significant amount of BTC. As one of Wall Street's largest bond brokerages, the firm also handles U.S. Treasury trading with Tether, indicating its substantial involvement in the cryptocurrency market.
University of Wyoming to Launch Bitcoin Research Institute
The University of Wyoming is also contributing to the development of Bitcoin through academic research. In August, the university will launch the UW Bitcoin Research Institute, aimed at producing high-quality peer-reviewed studies about Bitcoin. Bradley Rettler, a Bitcoin activist and Associate Professor, will serve as the institute's director. Rettler has criticised the current state of Bitcoin research and highlighted the need for more reliable publications to properly inform the public and influence policy. He pointed to flaws in previous studies, such as a 2018 University of Hawaii study on Bitcoin emissions, to underscore the importance of accurate academic input.
Conclusion
Trump’s proposal for a national Bitcoin reserve signifies a major development in the cryptocurrency landscape. With increasing interest from international bodies and the financial sector, this move could reshape the future of digital assets and global financial dynamics. As the US shows signs of embracing a more proactive approach to crypto regulation, other regions, such as Hong Kong, are also considering integrating Bitcoin into their financial systems. This growing global recognition and strategic interest in Bitcoin highlight its potential to significantly impact the broader crypto market.
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Hui Xin
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