The United States Creates a Strategic Bitcoin Reserve

On March 6, 2025, President Donald Trump signed an executive order that created a strategic Bitcoin reserve in the United States

President Donald Trump has signed an executive order creating a strategic Bitcoin reserve in the United States, a move that has generated controversy and speculation about its potential impact on the crypto industry.

Through this order, Trump is consolidating Bitcoin as a legitimate asset within the financial system, setting a precedent for the integration of cryptocurrencies into government finances. However, this measure sparks more questions than answers regarding its functionality, economic implications, and the risks associated with its implementation.

The declared goal of this new reserve is to grant Bitcoin the status of a strategic asset within the U.S. government, similar to other traditional reserves such as gold or oil. Through this initiative, the U.S. government seeks to ensure its financial stability in the face of traditional market volatility and inflation, ensuring that the country has an asset backed outside of governmental control. The creation of this reserve is a strong testament to the legitimization of cryptocurrencies, and particularly BTC, within the global financial sector.

The fact that Trump has decided to implement this measure during his presidency is no coincidence. The president is known for his interest in Bitcoin and his goal of positioning the U.S. as the “Bitcoin superpower” and the “global capital of cryptocurrencies.” Moreover, this initiative could be seen as a response to the growing enthusiasm for cryptocurrencies among younger generations, an electorate that Trump seeks to mobilize in the upcoming presidential elections.

This project also aligns with Trump’s stated goal of reducing the U.S. trade deficit. By investing in Bitcoin as a highly valued asset, Trump hopes to decrease the net foreign liability of the U.S. government, ultimately aiming to reduce the trade deficit with China, which is a key concern for the president.

However, despite the president’s stated goal of being “budget-neutral” and not generating additional costs for taxpayers, the creation of this Bitcoin reserve has sparked criticism. Many argue that this measure could have risky economic and fiscal consequences for the country in the long term.

According to the executive order, the U.S. Department of the Treasury will be responsible for managing the new Bitcoin reserve. This office will manage the BTC that the government currently holds, obtained primarily through asset confiscation procedures in judicial processes or as a result of civil sanctions. However, the most significant point is that the government will not be allowed to sell these assets but will rather seek strategies to acquire more, always remaining mindful of being “budget-neutral” and not generating additional costs for taxpayers.

This last point has been controversial regarding how the government will fund future BTC purchases. Some theories suggest that taxpayers could pay their taxes in Bitcoin without the need to report capital gains, while others propose that the government could sell gold or other traditional assets to acquire more cryptocurrencies. Whatever the chosen strategy, the lack of clarity on how this process will be implemented generates uncertainty among investors and experts in the sector.

One of the main concerns is the security of the assets. Bitcoin, like most cryptocurrencies, is a bearer asset, meaning that its possession directly grants property rights. If a hacker manages to access the government’s reserves, the consequences could be devastating. Although government agencies have implemented advanced security protocols, the decentralization and anonymity of Bitcoin remain a challenge for authorities in terms of asset protection.

Moreover, the fact that the government cannot sell the Bitcoin stored in its reserve raises a fundamental question: How will this measure affect the market in the long term? The government’s entry into the market could have unpredictable effects on the price of BTC. The uncertainty about how the government will handle this new reserve and its impact on supply and demand is a factor that many analysts find concerning.

In addition to the Bitcoin reserve, the order establishes the creation of a reserve for other cryptocurrencies held by the government, although these can be sold if deemed necessary. This stockpile of crypto assets will mainly be filled with confiscated goods, but it is likely that the government will seek to expand its holdings of other assets more actively in the future. Nevertheless, the Trump administration’s focus seems to be clearly centered on Bitcoin.

Beyond the technical aspects, Trump’s executive order has a clear political and economic backdrop. The creation of a cryptocurrency reserve not only aims to diversify the government’s reserves but also to position the U.S. at the center of the development and adoption of emerging technologies.

However, many economists consider Bitcoin to be a highly speculative and volatile asset, making it a risky choice for a country’s reserves. Bill Dudley, former president of the Federal Reserve Bank of New York, argues that BTC “does not qualify as money” due to its lack of stability and inability to generate passive income such as interest or dividends.

The creation of the reserve also raises potential conflicts of interest for Trump, given his ties to several crypto projects that could benefit from an increase in the value of Bitcoin. The close relationship between the president and the industry could raise concerns about the impartiality of decisions related to the management of this new reserve.

Overall, the creation of the Bitcoin reserve by the U.