U.S. President-elect Donald Trump may establish a strategic Bitcoin reserve (SBR) through an executive order. According to Dennis Porter, founder of the Satoshi Act Fund, Trump plans to use the U.S. Treasury’s Exchange Stabilization Fund (ESF) to implement this strategy, utilizing the fund to purchase Bitcoin after taking office.
Exchange Stabilization Fund and Bitcoin Reserves
The Exchange Stabilization Fund is typically used to stabilize financial markets during crises. If Trump purchases Bitcoin through this channel, it would mark the first time in U.S. history that Bitcoin is incorporated into national reserves. As of October 2024, the ESF has over $200 billion in assets and played a key role during the 2008 financial crisis and the COVID-19 pandemic.
Trump’s Decision and State-Level Pressure
Porter emphasized that if Trump does not take action, his organization will push for state-level legislation to promote Bitcoin reserves. It’s important to note that this strategy is gaining traction globally, with several U.S. states actively preparing similar plans.
Bitcoin Reserves: A Global Trend
The concept of Bitcoin reserves has become a global talking point. Several U.S. states, including Pennsylvania and Texas, are moving forward with Bitcoin reserve legislation, while countries like Brazil and Poland have proposed allocating a portion of their national reserves to Bitcoin.
As more countries and states join the conversation, the concept of Bitcoin as a strategic reserve is becoming increasingly important. Some market observers believe Bitcoin will play a pivotal role in the future financial system, though concerns exist about Bitcoin reserves becoming concentrated in large corporate hands, potentially distorting market fairness.
Trump’s Bitcoin reserve proposal is accelerating, and in the coming months, it may impact the global financial landscape. The actions of various states and countries are drawing more attention to the issue and pushing more nations to consider how to secure a competitive position in the evolving global financial system.