U.S. Commerce Secretary Howard Lutnick made an unexpected remark saying, “The administration is looking forward to making a strategic reserve of Bitcoin.” This indicates that the United States government is planning to consider buying Bitcoin for its treasury, like gold. The statement will be made during the White House Crypto Conference on 7 March.
Lutnick confirmed this while taking an interview stating, “The president definitely thinks that there’s a Bitcoin strategic reserve.” This indicates that Trump wishes to consider Bitcoin holding value in the financial realm. It is also plausible that currencies such as Ethereum, Solana, Cardano, and XRP would be captured in the reserve alongside Bitcoin.
Bitcoin Fans are Divided
As much as some loved the comment, it also faced backlash. Many fans of Bitcoin claim that the reserve should only consist of Bitcoin because it is the only true decentralized currency, at least until the others are created. They believe other currencies are more centralized and regulated, which disqualifies them as the reserve’s option.
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Even notorious Bitcoin adversary Peter Schiff said the reserve would be more sensible if it included only Bitcoin. Some argue adding other currencies would dilute the strength of Bitcoin as an asset reserved for the future.
Lutnick noted that the administration recognizes Bitcoin’s singular importance. “So Bitcoin is one thing, and then the other currencies, the other crypto tokens, I think, will be treated differently—positively, but differently,” he explained.
The Crypto Summit and Market Reaction
The Crypto Summit is set to feature 25 prominent figures from the industry, including Michael Saylor (MicroStrategy), Sergey Nazarov (Chainlink), and Brian Armstrong (Coinbase CEO). The summit will center on the regulations around crypto and the significance of digital currencies to the economy of the United States.
This news has now caused Bitcoin’s price to jump sharply, leading investors to perceive this as significant news. Trump’s proposal seems to indicate that the US is willing to adopt cryptocurrency fully, integrating it into the core of their financial strategies.
The strategic Bitcoin reserve will be disclosed in detail on March 7.
Also read: Ross Ulbricht Seeks Clemency for ‘Bitcoin Jesus’ Roger Ver After Trump Pardon
