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4 Reasons Why Trump’s Reserve Reserve Reserve Reserve: Crypto Execs

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A strategic bitcoin reserve in the United States reduces the likelihood that the government will ever “inhibit” cryptocurrency and may encourage many countries to adopt Bitcoin, according to Crypto observers.

On March 7, US president Donald Trump signed an order Establishment of a strategic bitcoin reserve and a digital stockpile asset.

White House Crypto says Czar David Sacks that the Reserve will be the capital of the “Bitcoin owned by the federal government that has lost as part of criminal or civil or civilian proceedings,” estimated to be around 200,000 BTC. It seems to be disappointed with the entrepreneurs, as it leads to a Immediately 6% fell on bitcoin price.

However, many say that markets can go wrong, and the news should be viewed as bullish.

Donald Trump — *President Trump signed the SBR Executive Order. Source:* *David Sacks*

The government is more likely to “ban” bitcoin

Bitwise Chief Investment Officer Matt Hougan Says One of the effects of a US Strategic Bitcoin (Btc) The Reserve (SBR) “notably reduces the likelihood that the US government will someday ‘Ban’ Bitcoin.”

In November, the Federal Reserve Bank of Minneapolis suggested That bitcoin could force the federal government to balance its budget.

“A legal prohibition against Bitcoin can restore the unique implementation of permanent major deficiencies, and thus could be a Bitcoin tax,” he said at that time.

Other countries may follow suit

The US Bitcoin Reserve has noted the chances that other countries will establish Bitcoin reserves and speed up the speed at which other countries will consider supporting them, says Hougan, as it creates a short window for them the “front-run” US Bitcoin purchase of Bitcoin.

The US is the global leader in the country-state Bitcoin Holdings, with 207,189 BTC worth $ 18 billion at current prices, According to In the Bitbo. China is estimated to arrive in the second estimated 194,000 BTC, followed by the United Kingdom, holding 61,000 Bitcoin.

El Salvador is the only country that has appointed BTC as legal soft. It is still accumulated and currently holds 6,103 BTC worth $ 534 million, According to In the country’s Bitcoin office.

“I hope that many of the G20 will be noticed and eventually follow America’s leadership,” said CEO of Coinbase Brian Armstrong.

Legitimize the bitcoin in the eyes of institutions

Hougan also chose that a US Bitcoin strategic reserve makes it harder for institutions such as agencies such as the International Monetary Fund “to position Bitcoin somehow dangerous or inappropriate to handle.”

The IMF is against sovereign countries, such as El Salvador, who invest in BTC. On March 3, the IMF Approved A funding program with El Salvador for $ 1.4 billion provided that it lowered the Bitcoin accumulation approach.

The memorandum of understanding indicates a condition of “no spontaneous BTC accumulation of the public sector in El Salvador.”

Bitwise Head of Research Ryan Rasmussen continued Believe, saying that the end of the game is not “the US government bought all Bitcoin around the world.”.

He listed what the US SBR meant: “Other countries will buy BTC, wealth managers have no reason, financial institutions have no reason, pensions and endowments are no reason, fear of selling the US is lost, the US is likely to buy, the possibility of buying states will only climb, and the possibility that the government is reducing the bitcoin.”

The co-founder and CEO in Lightspark, David Marcus, simple Says“This is a balanced outcome and the right decision for now,” adding that he is “happy reasons prevailing.”

Away has come to Bitcoin

Meanwhile, crypto lawyer John Deaton Points Treasury secretary Scott Bessent and commercial secretary Howard Lutnick “is led by Potus to find ‘budget neutral’ ways to get BTC.”