US President Donald Trump signed an executive order Thursday establishing a "Strategic Bitcoin Reserve," forcefully endorsing a currency once shunned as a tool for money launderers.
The government stockpile, which backers liken to a "digital Fort Knox," will be composed of digital currency seized in US criminal proceedings, said David Sacks, the White House's crypto "czar," emphasizing in a social media post that Thursday's move made good on a Trump campaign promise.
The use of these assets "means it will not cost taxpayers a dime," Sacks said in a post on X.
"The purpose of the Stockpile is responsible stewardship of the government's digital assets under the Treasury Department."
The policy also allows the secretaries of Commerce and Treasury to develop "budget-neutral strategies" for adding to the reserve, he said.
Bitcoin prices fell as much as five percent following the announcement, apparently out of disappointment the program involves no immediate bitcoin purchases.
The move comes on the eve of a White House summit Friday with major crypto figures, who were significant donors to Trump's successful campaign to regain the presidency.
Cryptocurrency supporters organized heavily in the 2024 election in response to the skepticism of Joe Biden's administration to digital currency, also helping to propel Republicans to victory in key Senate races.
For believers, cryptocurrencies represent a financial revolution that reduces dependence on centralized authorities while offering individuals freedom from traditional banking systems.
Trump has waded into the space personally, partnering with exchange platform World Liberty Financial and launching his own "Trump" memecoin in January as his wife Melania did the same -- moves that have prompted conflict of interest accusations.
Trump critics such as Democratic Senator Chris Murphy of Connecticut have characterized Trump's cryptocurrency venture as a conduit to potential corruption on a massive scale.
"It's as if Trump is posting his Venmo or his Cash App handle and inviting corporations and foreign governments to just send him cash in secret," said Murphy in a video posted to X in which he called Trump's crypto venture "a pure grift."
Bd-pratidin English/Lutful Hoque
