The US President, Download Trump, has decided to establish an official government cryptocurrency reserve in the country, which has eventually drawn sharp criticism from several industry watchers. Many among them have even called the Thursday executive order “a pig in lipstick” as they fear that it will set a “horrible precedent.”
On Thursday, Donald Trump signed an executive order forming what he stated as a Strategic Bitcoin Reserve in addition to a Digital Asset Stockpile, which is even further crafted to fit in with other forms of digital currencies.
Trump's 'pig in lipstick' move slammed – fears it will set 'horrible precedent'https://t.co/44HaCcr2SD pic.twitter.com/9cElyRz1uk
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Reports state that the funds stocked in those reserves are coins forfeited to the federal government as part of criminal or civil proceedings. The “crypto czar,” as well as the White House’s AI, David Sacks, called the reserve the “digital Fort Knox for the cryptocurrency” and referred to the physical vault on a Kentucky military base, where a gigantic portion of gold is stored, belonging to the United States.
Several crypto enthusiasts have taken the other route and have further criticized the government for not being bolder. During the process, a lack of transparency is still there, and several people are raising questions.
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Ahead of the “Crypto Summit” of the White House, the sacks told the reporters on Friday that it was a “real shame that we did not maximize value for the American taxpayer” at the time of Joe Biden’s administration concerning the fact that he had restrictions on cryptocurrencies that Donald Trump has moved to lift.
A Capriole and a Bitcoin and digital assets hedge fund manager, Charles Edwards, called Thursday’s announcement “a pig in lipstick” as he primarily responded to Sacks’ post on X revealing what Trump had signed. “No active buying means this is just a fancy title for Bitcoin holdings that already exist with the government,” he told the BBC.
Jason Yanowitz, co-founder of the crypto firm Blockworks, agreed with the idea of a Bitcoin reserve but said that including other coins could set a “horrible precedent” and “make no sense.” He further stated – “Without a clear framework, we risk arbitrary asset selections, which would distort the markets and drive a loss of public trust.”
The investor director at Aj Bell, Russ Mould, stated – “This approach makes much more sense than buying the assets. It would be bizarre for the US to sell dollars to buy crypto when the dollar is the globe’s reserve currency and therefore a source of enormous influence.”
Despite so many talks, it wasn’t immediately clear how a crypto reserve would benefit the countrymen, but Sacks reassured reporters that it “will not cost taxpayers a dime.” The Sacks said that the country won’t sell any Bitcoin deposited into the reserve; instead, it will keep it as an asset. This reserve is said to contain Bitcoin exclusively, not to mention that the other cryptocurrencies will go in a separate stockpile.
Bitcoin reserves are uncommon in several countries, with the United States keeping gold and petroleum reserves, too. Their neighbors, Canada, have maple syrup reserves, and other countries have several reserves to protect national assets and diversify government holdings.
