Will the Trump Administration Use Bitcoin as a Strategic Reserve Asset?

Author: Vince Quill, CoinTelegraph; Translator: Tao Zhu, Golden Finance

Asset manager Bryan Courchesne recently appeared on CNBC to discuss the potential of Bitcoin to become a strategic reserve asset for the U.S. government under a future Trump administration.

According to the asset manager, adopting Bitcoin as a reserve asset would be difficult, but not impossible. Courchesne noted that the U.S. Department of Justice holds 200,000 Bitcoins, making the U.S. government the largest holder of Bitcoin, second only to the anonymous creator Satoshi Nakamoto.

Courchesne explained that the Department of Justice could simply transfer Bitcoin to the U.S. Treasury, paving the way for the Treasury to begin accumulating and holding this scarce asset for the long term.

Bitcoin’s Potential to Become a Global Reserve Asset

Against the backdrop of growing global debt and rising monetary inflation, former President Donald Trump’s announcement of support for the digital asset industry has sparked speculation that Bitcoin could become a global reserve asset or a strategic U.S. treasury asset.

Trump’s selection of 39-year-old Bitcoin holder JD Vance as his running mate has also sparked speculation that a future Trump administration could mean a new era for cryptocurrencies, with Bitcoin fully integrated into the current financial system.

Billionaire investor Mark Cuban has also envisioned a scenario where widespread inflation and geopolitical instability prompt the global population to turn to Bitcoin as a safe haven to protect their life savings and purchasing power, allowing Bitcoin to organically ascend to global reserve currency status.

Trump’s selection of 39-year-old Bitcoin holder JD Vance as his running mate has also sparked speculation that a future Trump administration could mean a new era for cryptocurrencies, with Bitcoin fully integrated into the current financial system.

Billionaire investor Mark Cuban has also envisioned a scenario where widespread inflation and geopolitical instability prompt the global population to turn to Bitcoin as a safe haven to protect their life savings and purchasing power, leading to Bitcoin’s organic ascension to global reserve currency status.

Data from countries with high inflation, such as Argentina, Venezuela and Turkey, suggests this is already happening as people turn to cryptocurrencies as a hedge against inflation.

Source: Mark Cuban

However, BlockTower Capital founder Ari Paul doesn't think so. Paul believes that there is a 10:1 chance that Bitcoin will become a U.S. strategic reserve asset within the next four years. The entrepreneur explained that even if a future president announced that the U.S. would not sell its Bitcoin holdings, the U.S. strategic reserve — a collection of assets held to respond to national emergencies — might not be formally established.