Trump plans national cryptocurrency reserve: revolution or risk?

Trump plans national cryptocurrency reserve: revolution or risk?

Vienna, Austria - Donald Trump brings the crypto world into turmoil! As part of his crypto summit, the former president announced the creation of a national strategic reserve for digital currencies. This happened just one day before the first crypto summit in the White House on March 7th. Trump explained to Truth that a working group would drive the strategic federal purchases from Bitcoin, Ethereum and other smaller cryptocurrencies, as Time This announcement came at a time when the cryptocurrency market felt an update after a drastic decline in February.

criticism and skepticism

Trump's step to set up a reserve that is already in possession of the US government should use Bitcoin units that are to be used to mixed reactions. According to David Sacks, the US digital currency officer, the Ministry of Commerce and Finance may also acquire further Bitcoin without burdening taxpayers. However, critics doubt the meaning of this reserve. Stephen Cecchetti, an economist from Brandeis International Business School, described the idea of ​​a strategic crypto reserve as "absurd". He noted that it was dangerous to rely on volatile assets to reduce debts, such as vienna.at reported.

The announcement raises numerous questions. How is this reserve financed? Is it filled with taxpayers to redirect money from the citizens to wealthy crypto investors? While some crypto enthusiasts hope that the reserve will increase Bitcoin's prices, others are worried that such a state intervention undermines the decentrality of the digital currency. The step could therefore raise more questions than it provides answers. In the middle of these uncertainties, some states already show interest in similar initiatives, which indicates that the debate about cryptocurrencies in the USA is just beginning.