On Tuesday, Coinbase CEO Brian Armstrong hinted that a strategic Bitcoin reserve under President Donald Trump is imminent.
“I think he’s excited about it. I mean, he really wants to be the first Bitcoin president,” Armstrong told Yahoo at the World Economic Forum in Davos.
At the Bitcoin 2024 conference in Nashville last year, President Trump promised to create a national Bitcoin stockpile. “For too long, our government has violated the golden rule every Bitcoiner knows by heart: never sell your Bitcoin,” Trump said.
President Trump said, “If I am elected, it will be the policy of my administration, the United States of America, to retain 100 percent of the Bitcoin that the United States government currently owns or acquires into the future.” . “This will effectively become the core of the nation’s strategic Bitcoin stockpile.”
Armstrong emphasized that Bitcoin’s strategic reserves are a logical step given existing reserves, saying, “The United States actually has 27 different types of reserves, including gold, oil, palladium, etc.” “I think we have reserves of rare minerals,” he said. “So I think the world is moving towards Bitcoin as the currency standard. Governments that hold gold should also hold Bitcoin in their reserves,” Armstrong said.
The Coinbase CEO emphasized that if the United States adopts a strategic Bitcoin reserve, other G20 countries will likely follow suit, which could lead to an increase in the price of Bitcoin.
He also pointed to record inflows into the Bitcoin exchange-traded fund (ETF), which was founded last January and currently has a market capitalization of more than $122 billion and assets under management of nearly $126 billion. did. “This is all positive news for Bitcoin adoption,” Armstrong said.
“I think[President Trump]is pushing for clearer regulations[for the virtual currency industry]across all sectors in the United States,” Armstrong said.
Last July, Wyoming State Senator Cynthia Lummis established a strategic Bitcoin reserve with the aim of acquiring 1 million Bitcoins, representing almost 5% of the global supply of Bitcoin Introduced the coin law. This effectively rivals the amount of gold reserves held by the United States.
However, other crypto industry players have doubts about Trump pursuing strategic Bitcoin reserves. “I don’t think Mr. Trump is going to get ready for Bitcoin,” Arthur Hayes, former BitMEX CEO, told CoinDesk. “At the end of the day, I don’t see how borrowing money to buy Bitcoin helps President Trump on any of his platforms.”
“There’s a lot of things you can do to borrow money and spend it on.” A) is important, but there are many other stakeholders who want to keep that borrowed money in their own pockets.