US Strategic Bitcoin (BTC) Reserve, Crypto Stockpile a ‘Pivotal Moment’ for Industry: KBW
President Trump’s executive command called for the development of a strategic bitcoin (BTC) reserve and a crypto stockpile is a “pivotal moment” for the industry, the KBW investment bank said in a research report Friday.
The President has ordered his administration to establish a Bitcoin strategic reserve to handle the government’s owners. He also called for a stockpile of other types of digital assets.
KBW noted that the “largest superpower in the world has embraced some of the leading blockchain protocols.”
Bitcoin is the real winner here, as it is exclusively treated as a reserve of owner, the report said. Bitcoin will not sell and the government also looks at options to buy more of cryptocurrency.
KBW estimates that the government is holding about 198,000 Bitcoin. It is noted that approximately 55% of this stack will be returned to Bitfinex, leaving a balance of nearly 86,000 tokens.
No details have been provided about how the government plans to accumulate bitcoin, but it can sell some of more than $ 800 billion in gold reserves to fund additional crypto purchases, KBW said.
The release of the US Treasury Bitbonds is another option, the bank said. These are Treasury bonds that include a “kick of Bitcoin,” and may lower government borrowing costs.
The government may also develop partnerships with US miners to receive Bitcoin royalties in exchange for tax breaks or incentives, the report added.
