With newly elected President Donald Trump’s recent commitment to using Bitcoin as a strategic reserve for the United States, speculation about the timing and feasibility of this initiative has increased within the crypto industry.
This proposal first articulated at the 2024 National Bitcoin Conference in Nashville earlier this year by Trump and pro-crypto Senator Cynthia Lummis, has gained a lot of attention as major financial players weigh in on its potential implications.
Race to Implement Strategic Bitcoin Reserve
Notably, BlackRock, the world’s largest asset manager and a leading issuer of cryptocurrency exchange-traded funds (ETFs), has reportedly expressed support for setting up a strategic Bitcoin reserve.
As evidenced by Trump and the senator’s previous statements Lummis’ accountThis initiative aims to tackle the country’s staggering national debt, currently estimated at $36 trillion, by leveraging BTC’s unique properties as a digital asset.
Dennis Porter, co-founder and CEO of the nonprofit Satoshi Action Fund (SAF), confirmed BlackRock’s approval of the strategic Bitcoin reserve, while emphasizing that the Trump administration is actively pursuing the creation of this reserve through an executive order.
Porter has indicated that his conversations with U.S. Senate offices indicate significant support for this plan. to report“The game continues, President Trump. The race has started.” He emphasized the urgency of the situation and suggested that Trump’s team is motivated to move quickly to implement the reserve before any state can pass similar legislation.
New BTC legislation ahead of Trump’s inauguration?
Porter further noted that he is rushing to pass strategic Bitcoin reserve legislation at the state level, possibly before any federal executive order, underscored by his confidence that such laws can be enacted within days of Trump taking office.
Interestingly, Trump’s proposal has resonated outside the US, with Porter revealing that he has been invited to speak to members of Congress and Parliament in two different countries, one in Europe and one in Latin America, about setting up a similar one strategic Bitcoin reserve.
Parallel to these developments, BlackRock released a report indicates a renewed optimism surrounding regulatory clarity for Bitcoin and digital assets, especially after the recent US elections.
The report suggests that Trump’s campaign involvement in a strategic Bitcoin reserve, in addition to the electoral success of pro-crypto politicians in both the House of Representatives and the Senate, could create a favorable macroeconomic environment for Bitcoin adoption.
Robbie Mitchnick, head of Digital Assets at BlackRock, emphasized that while Bitcoin’s long-term adoption will largely be determined by its fundamental use as a global monetary alternative, other factors, such as falling real interest rates, may also be at play. catalysts due to its increased acceptance.
At press time, BTC was trading at $92,330, approaching its all-time high of $93,300 during last week’s bullish trend.
Featured image of DALL-E, chart from TradingView.com