Trump Backs Bitcoin, Proposes National Reserve Strategy
With the growth of the crypto industry and the increasing use of bitcoin in transactions, the US is poised to lead in the digital asset sector, and Trump's proposal for a national Bitcoin reserve strategy is a key step in this direction, aiming to establish the US as a major player in the global crypto market.
President Donald Trump has expressed his support for Bitcoin, describing it as "amazing" and attributing its growth to the creation of thousands of jobs for Americans and a reduction in the burden on the US dollar. Trump emphasized the need for the US to lead in the digital asset sector, citing its increasing use in transactions and role in reducing strain on the dollar.
The President's comments reflect a broader shift in American policy, highlighting a growing recognition of crypto as a cornerstone of economic and strategic leadership. Trump proposed a national Bitcoin reserve strategy to hedge against inflation and preserve fiscal strength, criticizing the Biden administration for poor crypto oversight. This move is part of Trump's competitive devaluation strategy, which aims to accumulate bitcoins before it becomes a major international currency.
The White House is planning to establish a strategic bitcoin reserve, dubbed "the Mar-a-Lago deal," with advisor Bo Hines stating that the US is building infrastructure to support this initiative. Major US banks are already allowing clients to buy bitcoins, and the Federal Housing Finance Agency has endorsed the use of bitcoin. Trump believes that acquiring millions of bitcoins will compensate for the abandonment of the dollar's "exorbitant privilege," as Asian countries increasingly abandon the US dollar.
The Senate's passage of the GENIUS Stablecoin Bill marks a significant step toward federal crypto regulation, despite concerns over potential conflicts of interest. As the US dollar continues to decline, losing 11% of its value since the beginning of the year, Trump's support for Bitcoin is seen as a strategic move to boost American production and reduce the trade deficit.