Trump Admin Sees Bitcoin as ‘Fort Knox of the Future’, Says Foundation Devices CEO

Bitcoin’s role in the U.S. economy is becoming a hot topic within the Trump administration

Key members of the Trump administration are discussing the role of Bitcoin in the U.S. economy, specifically its impact on the dollar and its use as a national reserve asset, according to a report by Fortune.

As reported by the publication, the topic came up in conversations with administration officials, who prefer not to be named, during a recent gathering at the Trump International Hotel in Washington D.C.

The officials were reportedly weighing the pros and cons of Bitcoin, with one advisor recounting a meeting with the former president where it arose.

After Trump asked if the cryptocurrency could hurt the dollar, the advisor responded in the affirmative, but pointed out that it would be better for the U.S. to hold more of the asset than China.

"Trump’s first question was, ‘Will Bitcoin hurt the dollar?’ He loves the dollar—it’s America. But when the advisor responded, ‘Maybe, and if it does, would you rather China hold more of it or us?’ Trump immediately got it. He said, ‘We want the Fort Knox of Bitcoin, not them,‘" Herbert said.

One of Trump's administration officials reportedly sees Bitcoin as a viable asset for sovereign wealth funds, solidifying itself as a store of value. However, he highlighted the need for changes in tax policy for Bitcoin to function effectively as a currency.

"I think there’s going to be a nation-state competition to accumulate Bitcoin. It’s a perfect asset to put into any kind of stockpile or treasury," Herbert said.

"The problem is, how do you make it useful as currency? For that, you’d have to change the tax code. I don’t think we should have capital gains tax on Bitcoin. It makes it almost impossible to use as a currency. Even if the technology is there with things like Lightning, you’re not going to use it if every transaction needs to be reported to the IRS."

With several figures in Trump’s administration showing interest in cryptocurrency, perhaps we’ll see more action, not just in stockpiling Bitcoin, but in making it easier to buy and sell without worrying about taxes.