The post Trump’s Plan to Buy Bitcoin For Its Reserve: Here’s How the US Might Do It! appeared first on Coinpedia Fintech News
47th U.S. President Donald Trump has made a major move by signing an executive order to create a strategic Bitcoin reserve for the United States. This decision puts the U.S. among the few nations officially building a Bitcoin reserve. However, the biggest question is how the government plans to buy BTC without spending taxpayer money. The answer lies in “budget neutral strategies,” but what does that mean?
Trump’s Bitcoin Plan: No Taxpayer Money Involved?
The executive order instructs the Treasury and Commerce Departments to find ways to buy Bitcoin without costing U.S. citizens any extra money. This means the government needs to come up with smart solutions, and experts believe several strategies are on the table.
One idea is to use the increasing value of U.S. gold reserves. This would allow the government to trade some of its gold for Bitcoin, replacing one valuable asset with another.
However, many people who support gold might disagree with this plan because they see gold as an important part of the economy.
Could the U.S. Start Mining Bitcoin?
Another option being explored is Bitcoin mining. Some analysts suggest the government could use underutilized federal resources such as excess computing power and energy from federal data centers to mine BTC.
Bhutan has been doing this since 2019, proving that it’s a viable strategy. However, Bitcoin mining remains a controversial topic in the U.S., especially due to environmental concerns.
Bitcoin-Backed Bonds Be the Answer?
A third strategy being considered is issuing Bitcoin-backed bonds. This approach has already been used by MicroStrategy’s Michael Saylor, who leveraged bonds to acquire over 2% of the Bitcoin supply.
Given that Saylor is scheduled to attend a White House crypto summit, this method could gain serious traction.
U.S. Current Bitcoin Holding
Even though Trump has signed the executive order, additional legislative approval may still be needed to put the Bitcoin reserve plan into action. Currently, the U.S. government holds about 207,189 BTC worth nearly $18.48 billion.
In the past, it sold large amounts of Bitcoin, a move that Trump’s crypto advisor David Sacks criticized as a huge loss for taxpayers.
