On January 23, 2025, President Donald Trump signed an executive order establishing a working group to explore the creation of a U.S. strategic Bitcoin reserve. This group is tasked with evaluating the feasibility of such a reserve, potentially utilizing cryptocurrencies seized by the government, and is expected to report its findings by July. Currently, the federal government holds approximately 200,000 bitcoins, valued at about $21 billion. The executive order also prohibits the development of a central bank digital currency (CBDC) in the U.S. REUTERS
In a related development, Senator Cynthia Lummis has been appointed to lead the new Senate Banking Subcommittee on Digital Assets. She has previously proposed legislation for the Treasury to acquire 200,000 bitcoins annually over five years, aiming for a total of one million bitcoins. This initiative would be funded by profits from Federal Reserve banks' deposits and gold holdings. Proponents argue that a Bitcoin reserve could help the U.S. dominate the global Bitcoin market, reduce the deficit, and strengthen the U.S. dollar, offering protection against inflation. However, skeptics highlight Bitcoin's volatility, lack of intrinsic use, and vulnerability to cyber attacks as significant risks to such a strategic reserve.
Previously, she wrote on her X account.