US President-elect Donald Trump is rumored to be contemplating the establishment of a Strategic Bitcoin Reserve (SBR) through an Executive Order, as per Satoshi Act Fund founder Dennis Porter.
Porter took to social media platform X (formerly Twitter) on December 15 to announce Trump’s plans to utilize the Treasury’s Exchange Stabilization Fund (ESF) to execute this strategy following his inauguration. He mentioned that the Treasury possesses the authority to stabilize the dollar by purchasing currencies and that Trump intends to utilize this fund to acquire Bitcoin.
The ESF, which typically intervenes in financial markets during crises, boasts assets exceeding $200 billion as of October 2024. It has played a pivotal role in times of economic turmoil such as the 2008 financial crisis and the COVID-19 pandemic.
Porter stressed the significance of this move for US financial strategy and the need to act swiftly before other nations take the lead. Should Trump opt out of issuing the executive order, Porter indicated that his organization would advocate for state-level legislation to advance the SBR agenda. He stated, “If he doesn’t, we will be ready to apply pressure at the state level by creating a wave of ‘Strategic Bitcoin Reserves.'”
The concept of a Strategic Bitcoin Reserve has gained momentum worldwide. In the US, President-elect Trump and his allies have been vocal proponents of the initiative since mid-2024. Lawmakers like Senator Cynthia Lummis of Wyoming have proposed acquiring substantial Bitcoin holdings for national reserves. Lummis’s Bitcoin Act proposes that the US could amass 200,000 BTC annually over five years.
Several US states have already taken steps towards establishing Bitcoin reserves, with Pennsylvania and Texas leading the charge and at least ten other states actively working on similar bills.
Interest in Bitcoin reserves is also burgeoning globally. Brazil has put forth legislation suggesting the allocation of 5% of its international reserves to Bitcoin. Polish presidential candidate Slawomir Mentzen has pledged to create a Bitcoin reserve if elected. Lawmakers in Japan have also urged the government to explore similar measures.
These developments indicate a growing recognition of Bitcoin’s potential in shaping future financial systems. However, concerns have been raised about the potential centralization of Bitcoin’s supply in corporate reserves.
As the world delves deeper into the realm of digital assets and decentralized finance, the establishment of Strategic Bitcoin Reserves could mark a significant milestone in the evolution of financial strategies worldwide.